Tuesday, December 3, 2024
HomeMortgageRightmove will ‘carefully consider’ REA bid but says former proposals didn’t pass...

Rightmove will ‘carefully consider’ REA bid but says former proposals didn’t pass the bar


In a statement earlier today, Rightmove confirmed that it received a third “unsolicited, non-binding and highly conditional proposal” from REA on a possible cash and share offer to acquire the business.

The offer was for 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.

The REA Group said that, under the terms of the agreement, Rightmove shareholders would hold around 20% of the company’s stock.

The group said that the 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”.

The firm started making offers towards the firm at the start of this month.

In response, Rightmove has said that it would “carefully consider” the proposal with its financial advisers.

Andrew Fisher, Rightmove’s chair, said: “Rightmove is an exceptional company with a very clear strategy, a consistent track record of delivery and a strong management team. The board is confident in the company’s short- and long-term prospects, and sees a long runway for continued shareholder value creation.

“Based on the implied value and structure of REA’s first and second indicative non-binding proposals, we considered these proposals to be uncertain, highly opportunistic and unattractive. Accordingly, the board unanimously rejected them.

“The board will continue to act on behalf of our shareholders and respond to the most recent proposal in due course.”





Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments