Australian property group REA has upped its takeover bid for Rightmove to £6.1bn, saying it is “genuinely disappointed” with the lack of engagement from the company so far.
Earlier this month, Rightmove snubbed a £5.6bn offer from Rupert Murdoch-owned REA, saying it was “wholly opportunistic” and undervalued the British property portal.
The indicative offer was at 305p a share in cash, a premium of 26 per cent to Rightmove’s share price of 556p on 30 August 2024.
On Monday, however, REA said it had increased its bid by 9.2 per cent to 341p in cash, a 39 per cent premium to Rightmove’s share price on 30 August.
Owen Wilson, REA chief executive said: ““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.
“We have today increased our proposal to an implied value of 770 pence – it provides a combination of immediate value certainty in cash and at the same time gives Rightmove shareholders an increasing opportunity in core digital property and adjacencies where we have much expertise.
“We are genuinely disappointed at the lack of engagement by Rightmove’s Board and we strongly encourage the Rightmove Board to engage,” Wilson added.
REA also previously revealed plans for a dual listing in the UK, which would address concerns for UK-only funds unable to hold REA shares.
Rightmove was not immediately available for comment.