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The London Stock Exchange-listed property listings platform rejected the fourth offer from REA, causing the firm to withdraw from negotiations.
Subsequently, REA Group announced in a letter to the London stock market that it would not be making any further offers.
The fourth proposal would have seen the Australian-based tech firm acquire the British company for roughly £6.2 billion ($11.99 billion).
The final bid, made on 27 September 2024, was a cash and share offer for the entire issued and to be issued share capital. It included an implied offer price of 775 pence per share based on REA closing price on 27 September 2024, plus a special dividend of 6 pence per share. All together, that represented a 45 per cent premium to Rightmove's 12-month and 24-month volume weighted average share prices.
In its statement, REA Group said it believes the proposed combination would have “provided Rightmove shareholders the opportunity to meaningfully participate in a fast growing, diversified, global leader while receiving value certainty in an operating environment challenged by increased market competition”.
In voicing disappointment that the deal would not come to fruition, REA Group commented that the firm’s share price “has lacked any sustained upward momentum for two years despite being supported by its ongoing share buyback program and revised strategy announced at last year's Capital Markets Day”.
They also accused Rightmove’s board of “a lack of meaningful engagement” in the process, stating that “the consistent lack of information provided by Rightmove impeded the ability to progress discussions and work together towards a recommended transaction”.
Rumours of the deal first began circulating in early September, and were confirmed by REA Group in a statement to the ASX on 2 September.
At the time, the Australian tech giant and parent company of listings portal realestate.com.au said it saw “clear similarities” between REA and Rightmove, in terms of its “leading market positions in the core residential business, continued expansion and innovation of offerings across adjacent segments, leading audience share and strong brand awareness, as well as highly aligned cultural values”.
REA Group CEO, Owen Wilson, said the decision to leave the negotiation table showed the group’s commitment to its capital allocation framework.
“We are always financially disciplined when we look at M&A and reinvestment in our business and will continue to focus on the many other opportunities ahead of us,” he said.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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