Rightmove is set to consider a third £6.1 billion bid from Melbourne-based Rea Group after rejecting two previous offers.
The latest offer from Rea Group values the UK property platform at 770p per share, comprising 341p in cash and 0.0422 new Rea shares. Rightmove’s chairman, Andrew Fisher, confirmed that the board will carefully evaluate the revised proposal in consultation with financial advisers.
Earlier bids were dismissed by Rightmove as “opportunistic” and undervaluing the company’s potential. Despite this, the latest offer has boosted Rightmove’s stock, with shares climbing 2.6%, or 17½p, to 692p.
Rea Group, 61% owned by News Corp, has expressed its willingness to engage with Rightmove’s board immediately. The Australian firm is also planning a secondary listing on the London Stock Exchange to complement its current listing on the Australian Securities Exchange.
Rightmove dominates the UK house search market, holding an 86% share and boasting high profit margins. However, its shares have underperformed over the past year due to fears of rising competition from OnTheMarket, which was acquired by CoStar in a £99 million deal.
Rea has until September 30 at 5pm to either make a firm offer or walk away under the UK’s takeover code.
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Rightmove weighs third takeover offer from Australian property giant Rea Group