Australia’s REA Group has increased its takeover offer for UK housing portal Rightmove to £6.1bn. This is the third offer after being rebuffed twice earlier in the month. The offer is valued at 770p per Rightmove share, consisting of 341p in cash and 0.0422 new REA shares. REA believes the merger will enhance the experience for agents, buyers, and sellers of property in an increasingly competitive market.
REA expressed disappointment at the lack of engagement by Rightmove’s Board. The first offer was made on September 5th for £5.6bn, followed by an increased offer of £300m. Rightmove’s board has not officially commented on the latest offer but reports suggest that it has been rejected.
Shares in REA Group dropped by 2.1% on the Australian stock market after the revised offer. The company disputes Rightmove’s claim of being opportunistic and pointed out the lack of sustained upward momentum in Rightmove’s share price, despite its ongoing share buyback program.
The third offer of £6.1bn will require Rightmove’s board to consider their options. Major economic surveys and a speech by Chancellor Rachel Reeves are also expected today. With the property portal aware that there may be more offers on the table, it remains to be seen if the REA Group’s increased offer will be enough to engage Rightmove’s Board.
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