Rightmove PLC announced Wednesday that it has rejected a £6.1 billion ($8.1 billion) acquisition proposal from Australian online property advertising firm REA Group Ltd., marking the third time the U.K.-based property portal has turned down an approach from Rupert Murdoch’s company.
Board Unanimously Rejects Offer
Rightmove’s board dismissed the “unsolicited, non-binding, and highly conditional” offer on Tuesday, citing that it materially undervalued the company and its long-term growth prospects. After consultation with financial advisers, the board concluded that REA Group’s proposal remained unattractive, despite being the highest of three offers made in recent weeks.
Rightmove Rejects £6.1B Offer : REA Group’s Frustration
REA Group, which is majority-owned by Murdoch’s News Corp., expressed its disappointment with Rightmove’s rejection. “REA is frustrated by the lack of substantive engagement with Rightmove,” the Australian firm said in a statement, urging Rightmove’s shareholders to pressure the board to engage in discussions before the September 30 deadline.
Rightmove Rejects £6.1B Offer : Terms of the Offer
REA Group’s latest offer, made Monday, valued Rightmove at 770 pence per share, a 39% premium over the U.K. company’s closing share price on August 30. The proposal included 341 pence in cash and 0.0422 new REA shares for each Rightmove share. If successful, Rightmove shareholders would own around 20% of the combined company.
