Rightmove is assessing a new takeover proposal from Australia’s Rea Group, valued at £6.1bn.
- The offer includes 341p in cash per share and 0.0422 Rea Group shares.
- Rightmove previously dismissed earlier proposals from Rea Group as opportunistic.
- Rea Group aims to secure a presence on the London Stock Exchange through a secondary listing.
- The deadline for Rea Group to formalise this offer is 30 September.
Rightmove, a leading UK property platform, is currently reviewing a third takeover proposal from Australia’s Rea Group. The offer is significant, valuing Rightmove at 770 pence per share, which combines 341 pence in cash with additional Rea Group shares, highlighting the strategic interest in Rightmove’s robust market position.
Andrew Fisher, Chairman of Rightmove, stated that the board is scrutinising this revised offering with assistance from financial advisors. This move follows the rejection of previous bids, which Rightmove deemed as undervaluing the company’s market potential and labelled them as ‘opportunistic.’
Investor sentiment appears cautiously optimistic as Rightmove’s stock has risen by 2.6%, or 17.5 pence, reaching 692 pence following the announcement. The market’s positive response signifies potential investor confidence in the latest proposal, reflecting Rightmove’s sustained influence in the property market.
Rea Group, predominantly owned by News Corp at 61%, is keen to expedite discussions with Rightmove and has emphasised its willingness for immediate engagement. By pursuing a secondary listing on the London Stock Exchange, Rea Group aims to reinforce its corporate presence alongside its existing Australian Securities Exchange listing.
Rightmove dominates the UK property search market with an impressive 86% market share, which could be a vital asset to Rea Group’s strategic portfolio. However, Rightmove’s shares have faced challenges over the past year, primarily due to competitive pressures from OnTheMarket, which CoStar acquired for £99 million. Amidst these dynamics, Rea Group must decide by 5pm on 30 September whether to formalise its offer or withdraw, in compliance with the UK’s takeover regulations.
The outcome of Rea Group’s offer remains pending as the deadline approaches, with significant implications for the UK property sector.
