25th Sep 2024 09:13
(Alliance News) - Australia's REA Group Ltd on Wednesday bemoaned what it called Rightmove PLC's lack of engagement after the UK firm rejected REA's latest bid proposal.
Rightmove, the Milton-Keynes-based online property portal, said the increased bid, made on Monday, "continues to be unattractive and materially undervalues the company and its future prospects".
Rightmove said it unanimously rejected the proposal on Tuesday.
Sydney-based REA, which is majority owned by Rupert Murdoch's News Corp, made a fresh tilt to buy Rightmove on Monday, after making a previous approach earlier in the month.
The new bid values Rightmove's equity at GBP6.1 billion. The offer comprises 341 pence in cash and 0.0422 of a new REA share. Based on REA's closing price on Friday, the bid values each Rightmove share at 770p.
Shares in Rightmove were 0.1% higher at 683.80p each in London on Wednesday morning. REA closed down 0.7% at AUD192.39 each in Sydney on Wednesday. Rightmove has a market capitalisation of GBP5.40 billion, while REA's market cap is AUD25.42, about GBP13.07 billion.
Earlier in September REA confirmed it was considering a cash and shares bid worth 705p per share.
At the time, Rightmove labelled that approach "wholly opportunistic" and said it "fundamentally undervalued Rightmove and its future prospects".
REA said it had made another cash and shares tilt on September 16, worth 749p per share.
REA said it is "disappointed" by the latest rejection from Rightmove and "frustrated" that it has still had no substantive engagement with the UK listing.
REA continues to firmly believe that the proposal represents a "highly compelling" proposition for Rightmove shareholders.
The firm urged Rightmove shareholders to encourage the board of Rightmove to engage in constructive discussions with REA to work towards a recommended transaction, ahead of the upcoming deadline September 30.
By Jeremy Cutler, Alliance News reporter
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