Property listings giant REA Group sweetens offer for UK’s Rightmove
REA Group has again sweetened its potential takeover offer for Rightmove at the same time it expressed frustration at the British property portal’s refusal to discuss a deal.
The proposal on Monday is the third in less than three weeks from REA and comes after its first improved offer worth about £5.9 billion ($11.5b) was rejected last week.
Under the terms of the latest improved offer, Rightmove shareholders will receive 341 pence in cash and 0.0422 new REA shares for each Rightmove share. The offer values Rightmove at about £6.1b ($11.95b).
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By continuing you agree to our Terms and Privacy Policy.If successful, the acquisition would propel REA — which operates realestate.com.au, mortgage broking firm Mortgage Choice and property valuation firm PropTrack — into a global business.
It would see it dual listed on the London Stock Exchange and enlarge REA’s international presence.
Rightmove shareholders would hold about 20 per cent of the combined group if the deal goes through.
“We believe that the combination of our world-leading expertise and technology with the attractive Rightmove business will create an enhanced experience for agents, buyers and sellers of property,” REA chief executive Owen Wilson said on Monday.
“We live in a world of intensifying competition and this proposed transaction would bring together two highly complementary digital property businesses for investment and growth.
“We are genuinely disappointed at the lack of engagement by Rightmove’s board and we strongly encourage the Rightmove board to engage.”
REA said the Rightmove board had characterised its approaches as “wholly opportunistic” despite Rightmove’s share price lacking any sustained upward momentum for two years.
Defending its approach, REA said it was driven by the strong strategic rationale it saw for the proposed transaction.
REA is majority owned by Murdoch family-controlled News Corporation.
Shares in REA closed down 2.5 per cent to $194 on Monday.
Under British takeover rules, REA has until the end of the month to lodge a bid or walk away.
