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Rightmove plc (LSE:RMV) has rejected a third unsolicited and non-binding takeover proposal from REA Group Ltd, which sought to acquire the entire issued and to-be-issued share capital of the company. The latest offer, received on 22 September 2024, included a mix of cash and shares, proposing 341 pence in cash and 0.0422 new REA shares for each Rightmove share. Based on REA's share price on 24 September, the offer implied a total value of 759 pence per Rightmove share.
However, despite this increase from previous offers, Rightmove's Board, after careful evaluation with financial advisors, has unanimously concluded that the offer remains inadequate and materially undervalues the company's future prospects. As a result, the Board rejected the proposal on 24 September 2024, stating it is not in the best interest of shareholders.
The Board of Rightmove emphasized that shareholders should take no action in response to the increased proposal, as there is no certainty that REA will proceed with a firm offer or what its terms might be.
The offer is subject to the City Code on Takeovers and Mergers, with REA required to either announce a formal intention to make an offer or state its withdrawal by 5:00 p.m. on 30 September 2024. This deadline can be extended with the consent of the Takeover Panel.
