The board of Rightmove has rejected the third offer from REA Group to buy the business, saying it was “unattractive” and “materially undervalues” the company.
The proposal from REA Group, which was announced earlier this week, was 341 pence in cash and 0.0422 new REA shares for each Rightmove ordinary share.
This would value Rightmove’s entire issued and to be issued ordinary share capital at around £6.1bn.
In a statement, Rightmove said that from 30 August to 24 September, REA’s share price has fallen by around 12%.
It continued: “The board considered the increased proposal, together with its financial advisers, and concluded that the increased proposal continues to be unattractive and materially undervalues the company and its future prospects.”
Rightmove said that the board had unanimously rejected the proposal, and shareholders should take no action.
Introducing the Green Living Reward
Your clients can now get up to £2,000 cashback for making energy-efficient home
Sponsored by Halifax Intermediaries
REA Group said that it was “disappointed” by the latest rejection and is “frustrated that, save for the rejection of REA’s three previously disclosed proposals, REA has still had no substantive engagement with Rightmove”.
The firm continued: “REA continues to firmly believe that the further improved proposal represents a highly compelling proposition for Rightmove’s shareholders at a significant premium to relevant trading metrics, providing a combination of immediate value certainty in cash and at the same time giving Rightmove shareholders the opportunity to benefit from the future value creation of the combined business.”
REA urged shareholders to encourage the board of directors of Rightmove to “engage in constructive discussions” with it towards a “recommended transaction”, adding that it “remains ready to engage immediately”.
