Rightmove shuns ‘unattractive’ £6.1bn offer from REA

Rightmove has rebuffed Australian property group REA’s £6.1bn takeover bid, saying it still undervalues the company.

On Monday, Rupert Murdoch-owned REA sweetened its offer for the British property portal, just days after it had raised it for the second time to £5.9bn.

Rightmove said today its board unanimously rejected the bid on Tuesday. It considered the improved offer and concluded that it “continues to be unattractive and materially undervalues the company and its future prospects”.

It also pointed out that, since 30 August 2024, the last business day before the offer period, to 24 September 2024, REA’s share price has fallen by around 12 per cent.

REA’s offer of 341p in cash plus 0.0422 new REA shares introduces an element of risk because, if the offer is accepted, the value of the shares could decline further, potentially lowering the total worth of the bid after it’s finalised.

Earlier this month, Rightmove snubbed an initial £5.6bn offer from Rupert Murdoch-owned REA, describing it as “wholly opportunistic”.

In response, REA has said it is “disappointed by the latest rejection from the Board of Directors of Rightmove and is frustrated that, save for the rejection of REA’s three previously disclosed proposals, REA has still had no substantive engagement with Rightmove.”

Owen Wilson, REA chief executive has previously said the company believes a combination of its own technology with the Rightmove business will “create an enhanced experience for agents, buyers and sellers of property.”

He also slammed an alleged “lack of engagement” by Rightmove’s Board.

But analysts have pointed out that REA may need to bid much higher if it wants to bag London’s most profitable company.

It comes amid reports that Rightmove explored an all-stock, no-premium merger with its German counterpart Scout24 last year, although the company has categorically denied this.