Rupert Murdoch’s Australian property business has made a final takeover bid for Rightmove, intensifying its criticism of the board’s unwillingness to engage.
REA Group announced its latest £6.2 billion offer on Friday morning, marking its fourth attempt to acquire the UK’s largest online property portal ahead of a looming deadline.
This latest bid represents a substantial premium over Rightmove’s current valuation of £5.21 billion on the London Stock Exchange, which dropped last night. It also slightly exceeds the £6.1 billion bid made earlier this week, following previous offers of £5.6 billion and £5.9 billion.
In its announcement, REA indicated that it is seeking an extension to the takeover deadline of September 30. The company also expressed its “disappointment and surprise” at the repeated rejections of its previous proposals, stating that it has “repeatedly requested meetings” but has not received a response.
REA stated that it is “ready to engage immediately” with Rightmove, while City analysts cautioned that the group may adopt a more hostile approach if its latest offer is declined.
Owen Wilson, CEO of REA, stated: “While the Rightmove board has declined to meet with us, we have appreciated the opportunity to connect with Rightmove shareholders and share our vision for combining the leading digital property businesses in the UK and Australia.
“We still see significant potential to enhance Rightmove and accelerate its growth. This presents a compelling opportunity to establish a true global technology leader on the London market through a secondary listing, operating in two of the world’s most attractive markets.
“We have further improved our offer and are announcing today our intention to include a mix-and-match facility for shareholders who wish to receive a greater portion of their consideration in REA shares.
“We believe it is in the best interest of Rightmove shareholders for the Rightmove Board to engage with us and extend the deadline to September 30, 2024.”
This statement comes just days after a major Rightmove shareholder urged the company to initiate “serious” discussions with the Murdoch-controlled group.
AXA Investment Managers, which holds a £67 million stake in Rightmove, recommended that the board engage with REA after rejecting its third takeover proposal in as many weeks.
Jamie Forbes-Wilson, fund manager at AXA, remarked: “We agree that it may seem a bit opportunistic for REA to approach us now, but it also indicates that REA recognizes Rightmove as the high-quality business that we, as long-term shareholders, believe it to be.
“This feels like the beginning of a serious conversation between two companies that, when combined, could represent an exciting opportunity.”
REA’s bid underscores the Murdoch family’s efforts to diversify beyond its traditional media business as patriarch Rupert hands over control to his eldest son, Lachlan.
