The Rightmove logo is shown in this illustration taken on 10 April 2023.
Reuters | Given Ruwich
Australian real estate listed company Rhea Group Has acquired a British competitor for the third time Move right A new offer of 6.1 billion pounds ($8.12 billion) was made on Monday after two previous offers were rejected.
The latest offer includes 341p in cash and 0.0422 new REA shares, giving Rightmove an implied value of 770p per share.
Rupert Murdoch's family owns 62% of REA News Corpdown 1.52% on Monday.
Rightmove did not immediately respond to a request for comment on the new non-binding bid outside normal UK business hours.
Monday's REA offer was higher than an initial offer of 705 pence per share, or £5.6 billion, and a second offer of 749 pence per share. Rightmove rejected both offers, saying they undervalued the company.
REA said it had not had any “substantive engagement” with Rightmove other than the rejection and remained prepared to engage with the Rightmove board immediately.
REA chief executive Owen Wilson said in a statement: “We are very disappointed with the lack of engagement from the Rightmove board and we strongly encourage the Rightmove board to get involved.”
Analysts said the deal would allow REA to accelerate its international growth plans in a UK property market three times the size of Australia's.
“The increased offer is clearly an attempt to bring the Rightmove board to the negotiating table,” said Standard & Poor's analyst Entcho Raykovski, noting that if the deal goes ahead, News Corp's REA ownership would be reduced to about 49%.
“…We note that the REA has not yet declared this offer as best and final, so there is room for further improvement.”
The Australian company reiterated that it will seek a secondary listing in London to attract a wider range of investors.