Rightmove Rejects Improved Takeover Offer from REA Group

Rightmove plc has rejected a revised takeover offer from REA Group. The Board of the online property portal stated its unanimous decision to turn down the unsolicited, non-binding proposal, characterizing it as “unattractive” and significantly undervaluing the company.

The new proposal from REA, which is primarily owned by News Corporation, was submitted on September 22. It offered shareholders 341 pence in cash along with 0.0422 new REA shares for each share of Rightmove.

This offer valued Rightmove’s shares at approximately 759 pence, based on REA’s share price as of September 24. However, the context of the offer is important, as REA’s stock has declined by around 12% since August 30, 2024, causing skepticism regarding the true worth of the proposal.