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Australia’s REA Group Ltd on Monday confirmed it is considering considering make a cash and shares takeover offer for UK peer Rightmove PLC, saying it was responding to ‘press speculation’.
Both Sydney-listed REA and London-listed Rightmove provide online property buying websites.
REA said it has not yet ‘approached, nor had any discussions with, Rightmove regarding any potential offer’.
However, the company said it sees a ‘transformational opportunity’ in the combination of the two companies.
‘The REA board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns,’ REA said in a statement.
‘REA therefore considers that a combination of the two businesses would provide a significant opportunity to unlock shareholder value.’
Melbourne-based REA now has until September 30 to announce a firm intention to make an offer for Milton Keynes, England-based Rightmove or walk away. It said that there can be no certainty it will make an offer and that Rightmove need take no action at this time.
REA shares were down 5.7% to A$206.45 in Sydney on Monday, giving it a market capitalisation of A$27.28 billion, about £14.00 billion. Rightmove closed up 0.9% in London on Friday for a £4.40 billion market cap.
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