Rightmove Shares Climb After Rejecting REA Takeover Proposal

Shares of Rightmove plc experienced an increase on Monday after the company turned down a revised takeover proposal from the Australian property listing company, REA Group.

At 4:37 a.m. ET (0837 GMT), Rightmove’s shares rose by 2.8% to £693.

REA, which is largely owned by News Corporation led by Mr. Murdoch, submitted its latest bid on September 22, valuing Rightmove at 770 pence per share. This was an increase from their previous offers of 705 pence and 749 pence, bringing Rightmove’s total valuation to roughly £6.1 billion.

The latest bid included 341 pence in cash along with 0.0422 new REA shares for each Rightmove share.

Despite representing a 9.2% increase over the initial offer and a 39% premium to Rightmove’s share price of 556 pence on August 30, Rightmove’s board rejected the proposal, stating it “fundamentally undervalued” the company.

This rejection marks the third time that Rightmove has declined an offer from REA, referring to their approach as “opportunistic.”

REA, recognized for its strong growth record, asserted that the merger would create a global digital property leader, bringing value to shareholders and enhancing the property experience for both agents and consumers.