Shares in Rightmove rose sharply yesterday on confirmation of a bid interest from an Australian rival majority-owned by Rupert Murdoch’s News Corp.
REA Group announced on Monday morning that it was considering a takeover proposal to create a globally-focused real estate company.
Any bid would likely comprise a cash and shares offer. No approach has been made to date, REA said (also confirmed by Rightmove).
REA is 61%-owned by News Corp, which has existing UK interests including The Sun and The Times newspaper brands under the company’s News UK arm.
Shares in Rightmove, valued at almost £4.4bn as of last Friday’s close, jumped 27.4% to 708p when the FTSE 100 closed for business on Monday, taking them to their highest level in two-and-a-half years.
REA stock, however, fell 8%.
Under the UK’s takeover code, it has to update the market if it has a firm intention to make a bid by 30 September.
Rightmove issued the following statement late yesterday afternoon:
“Rightmove plc (“Rightmove” or the “Company”) notes the announcement this morning from REA Group Ltd (“REA”). Rightmove has not received any approach from REA about a possible offer for the Company. Rightmove shareholders should take no action.
“Any offer for Rightmove is governed by the City Code on Takeovers and Mergers (the “Code”). Under Rule 2.6(a) of the Code, REA must, by not later than 5.00 p.m. on 30 September 2024, either announce a firm intention to make an offer for Rightmove in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.
“A further announcement will be provided as and when appropriate.”
Rightmove added in a separate statement, in accordance with Rule 2.9 of the City Code on Takeovers and Mergers:
“Rightmove confirms that there are 788,750,604 ordinary shares of 0.1 pence each in issue (excluding 11,401,687 shares held in treasury). The International Securities Identification Number (ISIN) for Rightmove’s shares is GB00BGDT3G23.”
EYE NEWSFLASH: Rightmove targeted for £4.4bn takeover offer by News Corp’s REA
Daily news email from EYE
Enter your email below to receive the latest news each morning direct to your inbox.