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Rightmove shares rise after rejecting REA takeover bid

Published 23/09/2024, 06:38 pm
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RMV
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Investing.com -- Shares of Rightmove plc (LON:RMV) rose on Monday after the company rejected a further improved takeover bid from Australian property listing giant, REA Group. 

Rightmove shares were up 2.8% at 4:37 a.m. ET (0837 GMT) at £693.

REA, which is majority-owned by Mr. Murdoch's News Corporation, made its latest offer on September 22, valuing Rightmove at 770 pence per share, up from its earlier proposals of 705 pence and 749 pence, putting Rightmove's overall valuation at around £6.1 billion. 

The offer included 341 pence in cash plus 0.0422 new REA shares per Rightmove share.

Despite the 9.2% increase over the initial offer and a 39% premium to Rightmove's share price of 556 pence on August 30, Rightmove’s board rejected the proposal, citing concerns that it "fundamentally undervalued" the company. 

This marked the third offer that Rightmove turned down, calling REA's approach as "opportunistic."

REA, known for its strong track record of growth, said the combination would create a global digital property leader, offering value for shareholders and improving the property experience for agents and consumers.

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