OnTheMarket shareholders vote through CoStar sale
Over 90% of shareholders including many agents vote to accept the US firm's £1.10p per share offer for the portal.
A majority of OnTheMarket shareholders have voted through its acquisition by US property and data giant CoStar at a meeting in London today.
Some 945 eligible shareholders, many of whom are estate agency owners alongside City investors, voted to accept the bid which is an all-cash offer for the entire issued and to-be issued share capital of the portal.
Just 58 shareholders holding 5.78% of the firm’s stock voted against the takeover, with even fewer voting against a special resolution to officially facilitate the transaction.
But not all shareholders bothered to vote, with approximately two-thirds casting their votes during the meeting.
Shares removal
The move from PLC to CoStar subsidiary will now begin with a court hearing on the 7th December, and the removal of OTM’ shares from the AIM stockmarket on 12th December.
Agents who own stock in OnTheMarket (OTM) will be paid £1.10p per share, way below its launch price back in 2017 of £1.65p, when its member agents voted overwhelmingly to ‘de-mutualise’ and float on London’s AIM stock market. It subsequently raised £30m for the portal’s expansion and development.
The acquisition of OTM by CoStar has not gone down well in all quarters. Activist Brett Stone believed the £1.10p offer under-valued the company but, as one insider commented to The Neg today, there are very few other organisations with the deep pockets that Co-Star possesses.
Investors in Rightmove have been rattled by the news. When the takeover was mooted back in October this year, the portal’s share priced tanked by 12%, albeit less than the 30% drop predicted.
Target
Commenting on the Acquisition, Jason Tebb, Chief Executive Officer of OnTheMarket, says: “From a position of strength, partnering with CoStar will significantly accelerate our strategy with the clear target of becoming the market leader, whilst staying committed to fair and sustainable pricing.
“CoStar will bring industry-leading global expertise and significant financial firepower to invest in OnTheMarket, allowing us to accelerate our transformation of the sector. We have strong shared values in our commitment to agents who we believe will benefit from unparalleled value and greater opportunities to enhance their businesses.”
Read the voting record in full.
90% looks like a lanslide of common sense to me – and much good will flow from this – from all portals now becoming super sensitive to their client needs, to portals themselves opening new lines that support better the obvious digital transformation of real estate that is moving at pace. I held no shares in OTM, and have no commercial tie with Jason Tebb, but he definitely is a person who understands property and his client base, possibly his property background unlike other portal CEO’s who lack this vital ingredient gives him that vital edge.