Rightmove tells shareholders to 'take no action' over £6.2bn REA offer

(Sharecast News) - Rightmove responded to a fourth unsolicited and "highly conditional" acquisition proposal from REA Group on Friday afternoon, urging shareholders to take no action while it considered the deal. The offer, announced by the News Corp-controlled firm on Friday morning, valued the UK property portal at 775p per share.

It included 346p in cash, 0.0417 new REA shares per Rightmove share, and a special dividend of 6p in lieu of any final dividend for 2024.

The latest proposal followed three previous offers from the Australian digital real estate company, all of which were rejected by Rightmove's board.

It came just days before the 30 September deadline set by the UK Takeover Code, which would require REA to either make a firm offer or withdraw its bid.

REA voiced its frustration over the lack of engagement from Rightmove's board in its fourth proposal, appealing directly to shareholders to support the deal.

Its offer also included a mix-and-match facility, allowing shareholders to adjust the proportions of cash and shares they receive.

REA argued that the acquisition would create a global digital property leader with significant growth potential, backed by strong financials and a planned leverage reduction post-transaction.

However, Rightmove's board was yet to indicate any willingness to engage, urging shareholders to take no action until it had thoroughly reviewed the proposal with its financial advisers in a statement released last on Friday.

At 1603 BST, shares in Rightmove were up 0.96% at 671.4p.

Reporting by Josh White for Sharecast.com.