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DealStreetAsia

Singapore-based PropertyGuru's shareholding structure changed

Indonesian media group Emtek divests as TPG and KKR keep money in online realtor

Singapore based PropertyGuru cancelled its initial public offering on the Australian Stock Exchange in Oct. 2019.   © Reuters

JAKARTA/SINGAPORE -- Indonesian media group Emtek has ceased to be an investor in Singapore-based PropertyGuru, having divested its shares as part of the online realtor's recent funding rounds.

Other investors, including venture capital company Square Peg Capital, and Vulpes Testudo Fund have pared their stakes in the company.

So far this year, PropertyGuru Group has raised 300 million Singapore dollars ($220 million) from TPG Capital and KKR & Co, across two funding rounds.

PropertyGuru said the investments involved a combination of primary and secondary fundings. No shares under Employee Stock Ownership Plans were involved in the transactions.

Based on filings in September with Singapore's Accounting and Corporate Regulatory Authority, or ACRA, TPG Asia VI SPV GP is listed as a new shareholder of PropertyGuru.

There was also a transfer of shares, dated Sept. 4, from seven shareholders to the vehicle, as well as to another vehicle listed as TPG Asia VI SF. Those shareholders include PT Kreatif Media Karya, Square Peg Capital, Vulpes Testudo Fund and a number of individuals.

Filings show that PT Kreatif Media Karya, also known as KMK Online, no longer holds any shares in PropertyGuru. KMK Online is the digital arm of Indonesian TMT conglomerate PT Elang Mahkota Teknologi, or Emtek Group.

Emtek became a minority investor in PropertyGuru in September 2014 as part of a joint venture in Indonesia. The investment amount was not disclosed. PropertyGuru operates in that market as Rumah.com, and the JV was to allow it access to Emtek's media platforms. The two companies were also to collaborate on joint sales initiatives.

Meanwhile, Paul Bassat, co-founder of Square Peg, ceased to be a director at PropertyGuru in April, according to a separate filing with ACRA. Tushar Roy, a partner at the same VC company, ceased to be a director in September.

Adi Wardhana Sariaatmadja, president commissioner at Emtek, has also ceased to a director at PropertyGuru.

"Our long term investor Emtek has realized their investment and sold their entire stake in the business. Square Peg is no longer on the board but continues to be invested in the business," a PropertyGuru spokesperson confirmed to DealStreetAsia.

The company has declined to provide further details, including on its shareholding.

In October 2019, PropertyGuru pulled its proposed 1.2-billion-Australian dollar initial public offering on the Australian Stock Exchange, citing market uncertainty. The company also said at the time that TPG and KKR, which held nearly 58% in the company then, were not seeking to sell any stock in the IPO.

According to the IPO prospectus PropertyGuru had filed with Australian regulators, the four largest shareholders in the company at the time were TPG at 30.4%; KKR at 27.25%; Emtek at 15.5% and Square Peg at 7.2%.

TPG first invested in PropertyGuru in 2015, in a $130 million round that included Emtek and Square Peg.

KKR had previously invested about $200 million in a Series D funding round in 2018.

TPG and KKR were not expected to sell any shares in the IPO, though their stakes in PropertyGuru would have been diluted to 26% and 23.3%, respectively, after the listing.

Emtek, which held 40,740,000 ordinary and Series B and C preference shares, was due to sell 18,218,200 shares, and own 7.33% of PropertyGuru after the listing. Had the IPO taken place, Emtek could have received between A$67.4 million and A$81.2 million for the shares, according to the indicative price range of A$3.70 and A$4.50 per share, and assuming any preference shares were converted to common stock.

Square Peg was to sell 5,488,600 shares and own just 4.37% post-IPO.

In the prospectus, PropertyGuru recorded a net loss after tax of S$43.5 million for the first half of 2019. Net losses for 2018 were S$12.9 million. The company recorded S$32.2 million in share capital and S$49.3 million in preference shares on its balance sheet as of June 30, 2019.

For the original story from DealStreetAsia, click here.

DealStreetAsia is a financial news site based in Singapore that focuses on corporate investment activity in Southeast Asia and India. Nikkei recently announced the acquisition of a majority stake in the company.

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