REA determined to do ‘what it takes’ to buy Rightmove, says insider
Claim is made by industry insider following a week of multiple offers by REA Group to the Rightmove board to buy its entire share issue at a 45% premium.
A senior figure within the industry has told The Neg that they understand Australian firm the REA Group will do ‘whatever it takes’ to buy Rightmove and that consequently a hostile takeover of the portal is “highly likely”.
The comments, which have been given on the understanding of anonymity, follow a busy week for the two portal giants during which multiple attempts have been made by REA Group to persuade Rightmove to ‘engage’ over its offer to buy the company’s shares.
This include the latest at a 45% premium to Rightmove’s share price average over the past 12 months.
On Friday REA Group made this offer, its fourth in a matter of a few weeks, representing a non-binding ‘indicative proposal’ to the Board of Directors of Rightmove over a “possible cash and share offer for the entire issued and to be issued share capital of [the portal]”.
Refused
“While the Rightmove Board has refused to meet with us, we have enjoyed the opportunity to connect with Rightmove shareholders and to share our vision for the combination of the no. 1 digital property businesses in the UK and Australia,” says Owen Wilson, CEO of REA Group.
“We continue to see the potential for us to strengthen Rightmove and accelerate its growth. This is a compelling opportunity to create a true global technology leader on the London market via a secondary listing, operating in two of the most attractive markets in the world.”
In response to this fourth offer, Rightmove has released a statement, saying: “As it has done throughout this process, the Board will consider [this] ‘latest proposal’ together with its financial advisers and, in the meantime, shareholders are urged to take no action”.
