Rightmove PLC (LSE:RMV) has received a second revised offer from Murdoch-owned REA Group valuing the property portal at approximately £6.1 billion.
This marks the third approach made by REA, following an initial proposal on 5 September at 705p per share and a revised offer on 16 September at 749p per share.
Rightmove has rebuffed all previous offers on the grounds that they are “wholly opportunistic” and in a later statement, said it was again rejecting this latest offer.
Chair Andrew Fisher said: "Rightmove is an exceptional company with a very clear strategy, a consistent track record of delivery and a strong management team. The board is confident in the company's short and long term prospects, and sees a long runway for continued shareholder value creation.
"Based on the implied value and structure of REA's first and second indicative non-binding proposals, we considered these proposals to be uncertain, highly opportunistic and unattractive. Accordingly, the board unanimously rejected them."
At an implied value of around 761p, REA’s third approach for Rightmove represents a roughly a 9% increase from its initial proposal and a 38% premium to Rightmove’s undisturbed share price of 550p on 30 August.
Shareholders of Rightmove would hold approximately 20% of the combined group following the completion of the transaction.
“We are genuinely disappointed at the lack of engagement by Rightmove's board and we strongly encourage the Rightmove board to engage,” REA’s chief executive Owen Wilson said in making the third approach.
“We believe that the combination of our world-leading expertise and technology with the attractive Rightmove business will create an enhanced experience for agents, buyers and sellers of property.
“We live in a world of intensifying competition and this proposed transaction would bring together two highly complementary digital property businesses for investment and growth.”
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