REA Group boosts bid for Rightmove to £6.2 billion
- REA Group has revised its takeover bid for Rightmove, increasing the offer to £6.2 billion after three rejections.
- The new proposal includes a cash-and-shares package with a 17% premium and a special dividend.
- The company is urging shareholders to encourage the board to negotiate, indicating a strong interest in acquiring Rightmove.
The Australian REA Group has made a revised takeover bid for the UK property website Rightmove, increasing its offer after three previous bids were rejected. The new proposal includes a cash-and-shares package valued at £6.2 billion, which consists of 775p per share, representing a 17% premium over Rightmove's closing price. The cash component of the offer has been raised to 346p per share, while the stock element has been adjusted to 0.0417 new REA shares. Additionally, REA Group is proposing a special dividend of 6p per share. The company, which is primarily owned by News Corp, is urging Rightmove's shareholders to encourage the board to engage in discussions regarding the offer. REA Group is also seeking an extension of the deadline for making a firm offer, indicating its commitment to pursuing the acquisition despite previous rejections. This move reflects REA's strategic interest in expanding its presence in the UK property market, which could have significant implications for both companies and the broader industry.