Rightmove is considering a third takeover proposal from Rea Group, valued at £6.1 billion, after rejecting two prior offers.
- Rea Group’s current proposal offers 770p per share, including cash and stock components, reflecting a strategic bid.
- Rightmove’s board, led by Andrew Fisher, intends to scrutinize the proposal, highlighting prior reject decisions as ‘opportunistic.’
- Rea Group’s interest includes a potential secondary London Stock Exchange listing, signaling strategic market expansion.
- A firm decision is required by September 30, under UK takeover regulations, to finalize or abandon the acquisition.
Rightmove, a leading real estate platform in the UK, is currently assessing a £6.1 billion takeover proposal from Australia’s Rea Group. This marks the third takeover offer after dismissing two previous proposals, described by Rightmove as ‘opportunistic.’ The latest offer values Rightmove at 770p per share, which includes 341p in cash and a stock component of 0.0422 new Rea shares. Such a combination is crafted to appeal to Rightmove’s valuation expectations although past offers were deemed inadequate.
Andrew Fisher, Rightmove’s chairman, underscored the board’s commitment to an exhaustive review of the proposal. This review will involve consultation with financial advisors, ensuring that any decision aligns with shareholder interests and the company’s future prospects. The differing components of the offer speak to strategic attempts to meet Rightmove’s operational and market valuation.
Rea Group, primarily owned by News Corp, is keen to engage with Rightmove promptly. As part of their strategy, Rea Group also plans a secondary listing on the London Stock Exchange, adding to its existing Australian Securities Exchange presence. This move illustrates Rea Group’s strategic intent to penetrate and expand in the UK market.
Rightmove’s dominance in the UK property market remains robust, with an 86% share despite competitive pressures. However, the past year has seen its shares underperform due to rising concerns about competition, notably from OnTheMarket, which CoStar acquired for £99 million. This context is pivotal in understanding Rightmove’s cautious approach to evaluating Rea Group’s proposal.
Under the UK’s takeover code, Rea Group must finalize its decision by September 30 at 5pm, choosing either to proceed with a firm offer or withdraw. This deadline imposes strategic urgency, requiring swift assessment and decisive action.
All eyes are on the imminent decision by Rightmove as Rea Group’s deadline looms.
