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Highlights:
- Takeover Bid Rejected: Rightmove declines a fourth takeover offer from REA Group, citing undervaluation.
- Offer Details: The latest proposal valued shares at 780p, including cash and equity components, along with a dividend.
- Market Reaction: Rightmove shares fell 3.6% following the announcement, with a deadline for REA to make a firm offer looming.
Rightmove plc (LSE:RMV) announced on Monday that it has declined a fourth takeover proposal from Rupert Murdoch's Australian property company, REA Group, citing that the offer continues to undervalue the property portal. The latest bid, which valued Rightmove at £6.2 billion, proposed that shareholders receive 346p per share in cash along with 0.0417 new REA shares, implying an overall value of 780p per share, plus a dividend of 6p in lieu of any final dividend for 2024.
In a formal statement, Rightmove's board confirmed that it has thoroughly reviewed the latest offer with the assistance of its financial and legal advisors. After evaluating feedback from shareholders and discussions with the chair and management team of REA, the board concluded that the proposal remains unattractive and significantly undervalues Rightmove's current and future prospects. Consequently, it cannot recommend the offer to shareholders.
Under UK takeover regulations, REA Group has until 1700 BST on Monday to submit a firm offer or withdraw from the process. Following the announcement, Rightmove shares fell by 3.6%, trading at 644.80p as of 0810 BST.
Andrew Fisher, Rightmove's chair, expressed concern over the disruption caused by the ongoing negotiations. He urged REA Group to present a best and final proposal before the 5 PM deadline, emphasizing the importance of bringing certainty to the process for all involved stakeholders.
The ongoing negotiations highlight the challenges and uncertainties surrounding the potential acquisition, as Rightmove's board remains steadfast in its belief regarding the value of the company. The rejection of the latest bid underscores Rightmove’s confidence in its business model and growth potential in the competitive online property marketplace.
As the deadline approaches, the market watches closely to see if REA will make a revised offer or step back from the bidding process entirely. The implications of this situation extend beyond Rightmove, impacting investors, employees, and the broader real estate sector in the UK.
