🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Britain's Rightmove to weigh REA Group's sweetened $8.1 billion takeover bid

Published 09/22/2024, 07:12 PM
Updated 09/23/2024, 12:00 PM
© Reuters. FILE PHOTO: Rightmove logo is seen displayed in this illustration taken April 10 2023. REUTERS/Dado Ruvic/Illustration/File Photo
RTMVY
-

By Scott Murdoch and Himanshi Akhand

(Reuters) -Britain's Rightmove (OTC:RTMVY) said on Monday it would carefully consider Australian property listing firm REA Group's

sweetened 6.1 billion pound ($8.12 billion) takeover bid for the company, after rejecting two previous proposals.

The latest proposal consists of 341 pence in cash and 0.0422 new REA shares, giving Rightmove an implied value of 770 pence per share.

Rightmove said the non-binding and 'highly conditional' bid would be considered by the board and the company's financial advisers. REA Group's first two proposals were quickly rejected by the target company.

Shares of Rightmove rose 2.8% to 693.6 pence by 0730 GMT. REA, which is 62% owned by Rupert Murdoch's News Corp (NASDAQ:NWSA), closed down 2.5% on Monday.

Rightmove chairperson Andrew Fisher said the company would respond to REA's third bid in due course.

The REA bid put forward on Monday is higher than the initial offer of 705 pence per share, or 5.6 billion pounds, and the second proposal of 749 pence per share. Rightmove had rejected both the proposals, saying they undervalued the company and were "uncertain, highly opportunistic and unattractive".

REA said before Rightmove's comment on its third bid that it had not had any "substantive engagement" with the takeover target, except for the rejections, and that it remained ready to engage immediately with the Rightmove board.

"We are genuinely disappointed at the lack of engagement by Rightmove's board and we strongly encourage the Rightmove board to engage," REA CEO Owen Wilson said in a statement.

Britain's housing market is triple the size of Australia's, according to analysts, and a deal would allow REA to expedite its international growth plans.

"The increased offer is clearly aimed at bringing the Rightmove board to the negotiating table," said S&P analyst Entcho Raykovski, noting News Corp's REA ownership would be reduced to about 49% if a deal progresses.

"...we note that REA has not declared the offer best and final, so there is scope for further increases."

REA has until Sept. 30 to make a formal offer for Rightmove or walk away.

© Reuters. FILE PHOTO: Rightmove logo is seen displayed in this illustration taken April 10 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The Australian company reiterated that it would look to apply for a secondary listing in London to give it access to a wider pool of investors.

($1 = 0.7510 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.