Rightmove is currently assessing a third acquisition proposal from Australia’s Rea Group, which values the UK property website at £6.1 billion. This follows the rejection of two previous offers deemed insufficient.
The recent offer from Rea Group assigns a value of 770p per share to Rightmove, consisting of 341p in cash and 0.0422 new Rea shares. Rightmove’s chairman, Andrew Fisher, has stated that the board will conduct a thorough evaluation of this revised bid in collaboration with financial advisors. The prior offers were dismissed by Rightmove’s board as opportunistic and not reflective of the company’s true potential. This ongoing interest has nevertheless led to a boost in Rightmove’s market performance, with shares rising by 2.6%, or 17½p, to 692p.
Rea Group, which is 61% owned by News Corp, has expressed a readiness to engage with Rightmove’s board without delay. The Australian conglomerate is also preparing for a secondary listing on the London Stock Exchange to complement its Australian Securities Exchange listing. Rightmove maintains a dominant position in the UK property search market, commanding an 86% market share and achieving high profit margins. However, Rightmove’s share price has underperformed in the past year due to increasing competition from OnTheMarket, recently acquired by CoStar for £99 million.
Under the UK’s takeover regulations, Rea Group has until 5pm on September 30 to make a definitive offer or withdraw. The anticipation surrounding this decision is palpable as industry observers and stakeholders keenly await the outcome.
The upcoming decision by Rightmove will be pivotal, potentially reshaping the competitive landscape of the UK property market. The scrutiny of Rea Group’s proposal continues as the September 30 deadline approaches.
