Australian property company REA Group has increased its takeover offer for British real estate portal Rightmove to 6.1 billion pounds (around USD 8.1 billion). This follows two earlier offers, which Rightmove rejected, saying they undervalued the company. The new offer values Rightmove at 770 pence per share, made up of cash and REA shares. Rightmove has not yet responded to this latest proposal. A successful deal could help REA expand into international markets, especially since the UK housing market is much bigger than Australia's. REA is keen to engage with Rightmove's board and may seek a secondary listing in London to attract more investors.
REA Group, an Australian property company, has increased its offer to buy British real estate portal Rightmove at 770 pence per share. This includes 341 pence in cash and 0.0422 new REA shares. This is much higher than REA's earlier bids of 705 pence and 749 pence, which Rightmove rejected for undervaluing the company. Despite Rightmove's refusal to engage, REA remains eager to negotiate. REA's decision to improve the offer is part of its plan to expand into global markets. Britain's housing market is three times bigger than Australia's making it very attractive. Analysts believe this deal would help REA grow internationally much faster.
REA Group's CEO, Owen Wilson, remarked that the offer provides "immediate value certainty" in cash and enables Rightmove shareholders to benefit from the growth of digital property. He expressed disappointment that Rightmove's board had not engaged with the offer but encouraged them to initiate discussions. REA Group, mostly owned by Rupert Murdoch's News Corp, wants to apply for a secondary listing in London. This would help the company reach more investors and boost its presence in the UK market. Despite REA's efforts, Rightmove's board has not formally responded to the new offer, making the deal's future unclear.
A successful acquisition would help REA expand in global real estate markets. This is a key move as the company aims to grow internationally. REA has already planned to apply for a secondary listing in London to achieve this. This offer highlights REA's strong interest in entering the UK real estate market. REA may still increase its offer further.
The proposed acquisition of Rightmove by REA Group, with an increased offer of 770 pence per share, underscores REA's ambition to expand into the lucrative UK real estate market. Despite Rightmove's initial rejections, REA remains eager to negotiate, highlighting the strategic importance of this deal for its international growth. The potential acquisition could significantly bolster REA's global presence, with analysts noting the substantial benefits for both REA and its majority owner, News Corp.
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