Rightmove is currently reviewing a third takeover offer valued at £6.1 billion from Rea Group.
- The revised proposal comes after two earlier bids were dismissed as undervalued and opportunistic.
- Rea Group, backed by News Corp, has expressed readiness to engage with Rightmove immediately.
- Rightmove’s board is undertaking a detailed evaluation with financial advisers involved.
- A decision is required by 30th September, with implications for Rightmove’s market position.
Rea Group’s latest offer values Rightmove at 770 pence per share, split between 341 pence in cash and an allocation of new Rea shares. The UK property website must decide on this proposal by 5 pm on the 30th of September under the UK’s regulatory framework for corporate takeovers.
Previous offers were rejected by Rightmove’s board, which viewed them as undervaluing the company’s future prospects. However, the current offer appears more favourable, leading to a 2.6% rise in Rightmove’s share price, now standing at 692 pence per share.
Rea Group has signalled its willingness to negotiate with Rightmove right away. Notably, Rea, predominantly owned by News Corp, is planning a secondary listing on the London Stock Exchange which would accompany its existing presence on the Australian Securities Exchange.
Rightmove holds a significant position in the UK property search market, commanding an 86% market share, despite facing increased competition from OnTheMarket, a company recently acquired by CoStar for £99 million. Over the past year, Rightmove shares have underperformed against this competitive backdrop.
The outcome of this bid could substantially impact Rightmove’s standing in the industry, depending on the board’s decision to accept or reject the offer.
The coming days will reveal whether Rightmove’s board will alter its stance and accept Rea Group’s third offer, a decision that could reshape the company’s future.
