Property website operator IPGA (ASX:IPP) will raise $8.9 million through the sale of a 9.4% stake in itself to French property portal SeLoger.com.
The company has agreed to issue 15.3 million IPGA shares to SeLoger.com, a member of European media group Axel Springer.
The shares will be held in voluntary escrow for nine months from completion. SeLoger.com will be granted the right to elect a board member. As a result its CEO, Roland Tripard, will join the IPGA board.
Another of the deal's terms will allow SeLoger.com the right to participate in any non pro rata cash offering to maintain its stake.
IPGA chairman Simon Baker said the deal will provide the company with the funds to pursue further growth in Malaysia, Singapore, Hong Kong and Indonesia, and into more countries within the region.
Tripard said SeLoger.com made the investment because it believes the Asian market has “significant long-term future growth potential.”
IPP shares grew 14.86% in Monday's trading to $0.850.
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