REA Group Increases Offer for Rightmove to £5.9bn
The Australian REA, controlled by Rupert Murdoch’s News Corporation, has increased its offer for the UK's online property portal, Rightmove, to £5.9 billion after an initial rejection. This new proposal follows a unanimous refusal from Rightmove's board, which felt the initial bid undervalued the company. With REA's interest, Rightmove's shares rose from 555.6p to nearly 675p, representing a market cap of around £5.5 billion.
The Australian property group REA, controlled by Rupert Murdoch’s News Corporation with a 61% stake, has increased its offer for Rightmove, the UK's largest online property portal, to £5.9 billion.
This new bid follows a unanimous rejection from Rightmove's board, which labeled the initial offer as undervaluing the company.
The revised offer values Rightmove shares at 750p, up from the initial 705p.
Rightmove described the initial bid as opportunistic, advising shareholders against engaging.
Following news of REA's interest, Rightmove's share price surged from 555.6p to nearly 675p, equating to a market cap of around £5.5 billion.
REA has until the end of the month to make a formal bid or abandon the pursuit under the UK’s PUSU rule.
Upon completion, REA plans a secondary listing on the London Stock Exchange.
This move follows increased M&A activity in the UK's online property sector, such as CoStar’s acquisition of OnTheMarket for £100 million and Silver Lake’s acquisition of Zoopla for £2.2 billion in recent years.
This new bid follows a unanimous rejection from Rightmove's board, which labeled the initial offer as undervaluing the company.
The revised offer values Rightmove shares at 750p, up from the initial 705p.
Rightmove described the initial bid as opportunistic, advising shareholders against engaging.
Following news of REA's interest, Rightmove's share price surged from 555.6p to nearly 675p, equating to a market cap of around £5.5 billion.
REA has until the end of the month to make a formal bid or abandon the pursuit under the UK’s PUSU rule.
Upon completion, REA plans a secondary listing on the London Stock Exchange.
This move follows increased M&A activity in the UK's online property sector, such as CoStar’s acquisition of OnTheMarket for £100 million and Silver Lake’s acquisition of Zoopla for £2.2 billion in recent years.
