Rightmove, the FTSE 100 listed property portal, has rejected a fourth takeover proposal from Rupert Murdoch’s REA Group, valued at around £6.2 billion. The Australian company’s latest approach, made on Friday, was deemed “unattractive” and undervaluing Rightmove by the UK-listed company.
In response, Rightmove called on REA to present its “best and final proposal” by a 5 pm deadline on Monday, in a bid to bring certainty to the process and end the disruptive uncertainty caused by the ongoing takeover discussions.
The suitor, majority-owned by News Corp, had submitted a fresh proposal worth 781p per share and urged Rightmove to engage in negotiations. Despite meetings between the two parties’ chairmen and executives, Rightmove maintained its stance that the latest proposal did not change its view and reiterated confidence in its current strategy within the UK market.
Rightmove pointed out that none of REA’s proposals thus far warranted providing access to confidential information, implying that they did not meet the threshold for serious consideration. After consulting with shareholders, Rightmove concluded that it would better serve their interests by pursuing its standalone strategic plan.
REA had requested an extension to the put up or shut up (PUSU) deadline to consider a fifth proposal, an appeal promptly rejected by Rightmove, citing the need to avoid prolonged uncertainty for shareholders. Andrew Fisher, Rightmove’s chairman, emphasised confidence in the company’s independent future and urged REA to submit a final proposal before the deadline to bring closure to the process.
Founded in Melbourne in 1995, REA has grown into Australia’s largest property website and expanded operations in Asia. Valued at around £13.9 billion on the Australian stock market, REA employs approximately 3,400 staff. Rightmove, on the other hand, stands as the UK’s largest online real estate portal.
The rejection of the latest takeover offer sets the stage for potential developments in the ongoing saga between the two prominent property portals from opposite sides of the globe.