Rightmove PLC (LON: RMV) has decisively turned down a fourth acquisition proposal from Rupert Murdoch’s REA Group. It also declined requests to allow access to its financial records and to extend the deadline set for today under the “put-up-or-shut-up” rule.
The Australian company’s most recent proposal, made on Friday, was refused, prompting REA Group to insist that the UK’s leading market entity must now “engage.”
This morning, the FTSE 100-listed Rightmove PLC released a statement regarding the latest takeover bid from REA Group. The offer consists of 346p in cash plus 0.0417 new REA shares, totaling 780p per Rightmove share, based on REA’s share price as of September 30. Additionally, the proposal includes a 6p cash dividend, effectively increasing its value by 10p over the previous offer rejected last week.
Rightmove’s board has stated that the proposal is still unappealing and significantly undervalues the company and its future prospects, and thus cannot recommend it to shareholders.
Rightmove also addressed REA’s frustration over perceived engagement issues, noting that both companies have a longstanding relationship with numerous interactions, including strategy discussions as recent as June. Rightmove has responded to all communication from REA since their interest became public, maintaining a level of engagement considered standard under the circumstances of unsolicited, incremental offers.
Rightmove’s chair, Andrew Fisher, met with REA’s chair, Hamish McLennan, along with both executive teams. These meetings did not yield any new or materially different information than what REA had already presented publicly.
The company has declined REA’s requests for due diligence, asserting that sufficient public information exists for REA to make an appropriate proposal. Fisher expressed respect for REA’s achievements but reiterated confidence in Rightmove’s standalone future, noting the disruption and unease the takeover attempts have caused among staff.
Fisher urged REA to present a definitive final offer before today’s 5pm PUSU deadline to conclude the process. Following these developments, Rightmove’s shares dropped over 3% in early trading to 640p.
