London, September 23, 2024 – REA Group Ltd, the Sydney-listed provider of an online property buying portal, has escalated its pursuit of property portal Rightmove PLC. The revised bid now exceeds GBP6 billion, signaling REA’s determination to acquire the UK-based real estate platform.
Key Details
- The new bid values Rightmove’s equity at GBP6.1 billion.
- Components of the offer:
- 341 pence in cash per share.
- 0.0422 of a new REA share.
- Based on REA’s closing price on Friday, each Rightmove share is valued at 770 pence.
REA’s Persistence and Rightmove’s Response
- The latest bid represents a 9.2% increase from REA’s initial offer earlier in September.
- Despite two prior rejections, Rightmove shareholders would own approximately 20% of the combined entity.
- Rightmove previously labeled REA’s approach as “wholly opportunistic” and undervaluing the company’s future prospects.
Chief Executive Officer Owen Wilson said: "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. 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 have increased our proposal to an implied value of 770 pence – it provides a combination of immediate value certainty in cash and at the same time gives Rightmove shareholders an increasing opportunity in core digital property and adjacencies where we have much expertise. We are genuinely disappointed at the lack of engagement by Rightmove's board and we strongly encourage the Rightmove board to engage."
The future of Rightmove will certainly take some huge turns with REA Group demonstrating its commitment to reshaping the real estate landscape. As negotiations unfold, shareholders await Rightmove’s response.
