Rightmove rejects latest £6.2bn takeover approach from REA
The FTSE 100 listed property portal called on REA to make its ‘best and final proposal’ by 5pm on Monday to end ‘disruptive’ uncertainty.
Rightmove has rebuffed a fourth takeover proposal from Rupert Murdoch’s REA Group worth around £6.2 billion.
The UK-listed property portal said the latest approach from the Australian company, which was made on Friday, “remains unattractive and continues to materially undervalue Rightmove and its future prospects”.
It called on REA to put forward its “best and final proposal” ahead of a 5pm deadline on Monday to make a firm offer or walk away under City takeover rules to end the uncertainty and “disruption” caused by the process.
REA, which is majority-owned by the tycoon’s News Corp group, submitted a fresh proposal on Friday worth 781p per share.
The suitor also on Friday urged bosses at Rightmove to come to the negotiating table, criticising them for not agreeing to a meeting between the two parties.
Rightmove said that its chairman Andrew Fisher had met with his counterpart at REA, Hamish McLennan, following Friday’s proposed offer, with a further meeting also involving executives of both firms.
Rightmove said that “nothing was presented in either meeting which materially changed the board’s view of the latest proposal”.
“In addition, the meetings confirmed Rightmove’s confidence in its current strategy and execution within a UK context.”
The FTSE 100 firm has not yet granted REA access to its books, arguing that “none of REA’s proposals received to date has been at a sufficient level to grant such access”.
“Without a compelling proposal, it would not be appropriate or in the best interests of Rightmove or its shareholders to provide confidential and commercially sensitive information to REA,” it added.
It said the decision to reject the fourth proposal came after consultation with its shareholders.
“The board has concluded that shareholder interests would be better served through the execution of Rightmove’s standalone strategic plan,” the firm said.
It said that REA had, in the meetings held following Friday’s approach, requested an extension to the so-called put up or shut up (PUSU) deadline on September 30 so that it could consider a fifth proposal.
But Rightmove dismissed the request, saying the deadline “is designed to protect offeree companies from being subjected to an unnecessarily prolonged period of uncertainty cause by an offer period”.
Andrew Fisher, chairman of Rightmove, said: “We respect REA and the success they have achieved in their domestic market.
“However, we remain confident in the standalone future of Rightmove.”
He added: “The last few weeks have been very disruptive, as well as unsettling for our colleagues.
“To the extent REA wants to put forward a further proposal, I urge them to submit a best and final proposal ahead of today’s 5pm PUSU deadline such that we can bring certainty to this process.”
Rightmove is the UK’s largest online real estate portal, while REA is Australia’s largest property website.
Founded in a garage in Melbourne in 1995, REA has expanded its operations throughout the country, while it also has businesses in India and south-east Asia.
It is valued at about 27 billion Australia dollars (£13.9 billion) on Australia’s stock market and employs around 3,400 staff.
