Australia’s REA Group Ltd has started preliminary takeover talks with Rightmove PLC, days after confirming its interest in the UK‘s biggest property portal by market value, Bloomberg reported, citing people familiar with the matter.
REA, part of media mogul Rupert Murdoch’s empire, has made an initial proposal for Rightmove valuing the business in the low-700 pence-per-share range, the report said.
Both Sydney-listed REA and London-listed Rightmove provide online property buying websites.
Shares of Rightmove closed at 555.60 pence on August 30, the last trading day before news of REA‘s interest leaked. On Tuesday, they closed 1.3% higher at 670.80p, giving the company a market value of £5.29 billion.
https://www.bloomberg.com/news/articles/2024-09-10/murdoch-s-rea-said-to-start-takeover-talks-with-uk-s-rightmove?srnd=homepage-uk
Last Monday, REA confirmed it was considering a combination of the two businesses although it had not approached Rightmove.
‘The REA board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns,’ REA said in a statement.
‘REA therefore considers that a combination of the two businesses would provide a significant opportunity to unlock shareholder value.’
Melbourne-based REA now has until September 30 to announce a firm intention to make an offer for Milton Keynes, England-based Rightmove or walk away.
REA shares were up 0.6% at A$202.448 in Sydney on Monday.
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