logo-loader
viewZPG Plc

Zoopla owner ZPG mulling its options as Gocompare rejects “highly opportunistic” takeover offer

ZPG offered 110p for each Gocompare share, valuing the price comparison site at almost £420mln

zoopla website
Gocompare claimed it rebuffed an initial approach from ZPG back in May

Zoopla owner ZPG Plc (LON:ZPG) is mulling its options after price comparison site Gocompare.com Group PLC (LON:GOCO) publicly rejected its takeover approach on Tuesday evening.

FTSE 250-listed ZPG – which also owns uSwitch – tabled a cash-plus-shares offer of 110p a share which valued Gocompare at almost £420mln.

READ: Zoopla owner ZPG gains as it buys Money.co.uk and raises full-year earnings forecast

Gocompare dismissed the bid out of hand, labelling it “highly opportunistic” and telling investors that it “fundamentally undervalues the company”.

ZPG made initial approach back in May

It is the second time Gocompare has fended off interest from ZPG this year, claiming that a previous “unsolicited approach” was also rejected back in May.

At that time, ZPG also valued the company at 110p a share, although the offer was wholly in shares.

The most recent approach represents a 16% premium to Gocompare’s closing share price of 95p on November 7, the day before ZPG put forward its proposal.

But Gocompare pointed out that the offer is a discount to its share price of 110.5p which it closed at as recently as October 11.

Gocompare’s board said it had made “significant progress” since it demerged from Esure Group PLC (LON:ESUR) this time last year and reiterated its confidence about its full-year prospects.

ZPG "considering its position"

After this latest pushback, ZPG said it is “currently considering its position”.

As part of the City takeover code, ZPG has until December 12 to either revive its interest or tell the markets that it won't be lodging another bid. 

Gocompare shares rose 1.96% to 104p, while ZPG fell 1.54% to 332.80 in Wednesday's afternoon session.

Quick facts: ZPG Plc

Price: - -

LSE:ZPG
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Things coming together nicely in Greenland, says Bluejay Mining's CEO

Rod McIllree, Bluejay Mining PLC’s (LON:JAY) chief executive, tells Proactive that all three of its projects in Greenland are shaping up nicely with plenty of interest from mining giants. Dundas is the flagship and here a bulk sample of mineral sands has been shipped to a Rio Tinto facility...

1 day, 10 hours ago

2 min read