Rightmove is ready to think about a 3rd £6.1 billion bid from Melbourne-based Rea Group after rejecting two earlier presents.
The newest provide from Rea Group values the UK property platform at 770p per share, comprising 341p in money and 0.0422 new Rea shares. Rightmove’s chairman, Andrew Fisher, confirmed that the board will rigorously consider the revised proposal in session with monetary advisers.
Earlier bids have been dismissed by Rightmove as “opportunistic” and undervaluing the corporate’s potential. Regardless of this, the newest provide has boosted Rightmove’s inventory, with shares climbing 2.6%, or 17½p, to 692p.
Rea Group, 61% owned by Information Corp, has expressed its willingness to interact with Rightmove’s board instantly. The Australian agency can be planning a secondary itemizing on the London Inventory Alternate to enrich its present itemizing on the Australian Securities Alternate.
Rightmove dominates the UK home search market, holding an 86% share and boasting excessive revenue margins. Nevertheless, its shares have underperformed over the previous 12 months because of fears of rising competitors from OnTheMarket, which was acquired by CoStar in a £99 million deal.
Rea has till September 30 at 5pm to both make a agency provide or stroll away underneath the UK’s takeover code.
