LONDON — Rupert Murdoch’s Australian property firm REA Group said Monday it would no longer seek to buy the U.K.’s Rightmove after the property portal rejected a fourth takeover proposal.
REA Group’s latest offer implied a total offer value of 780p, based on the closing price of REA Group on Sept. 30, according to Rightmove.
Before Melbourne-headquartered REA Group confirmed it was abandoning its proposals for Rightmove, the U.K. firm had urged REA to submit a final proposal to bring an end to the uncertainty from the bidding process.
REA Group, in which News Corp owns a more than 61% interest, operates a number of property websites in Australia, as well as several brands in India and the U.S.
The company sold its real estate site PropertyFinder Group to Rightmove rival Zoopla in 2009, during the Global Financial Crisis.
LONDON—Rupert Murdoch’s Australian real estate company, REA Group, announced on Monday that it will no longer pursue the purchase of the U. G. Rightmove following the property portal’s denial of a fourth takeover bid.
A “fair price” agreement was a prerequisite for REA’s takeover bid of Rightmove, according to the company’s “disciplined approach” to mergers and acquisitions. “.
“We were let down by Rightmove’s lack of involvement, which prevented us from submitting a solid offer in the allotted time. CEO of REA Owen Wilson stated, “They had nothing to lose by interacting with us.
Separately on Monday, Rightmove announced that the fourth offer proposal from REA Group had been unanimously rejected by the board due to the fact that it “materially undervalued Rightmove and its future prospects.”. It went on to say that Rightmove’s standalone strategic plan would better serve the interests of shareholders.
In contrast to the previous third proposal, the offer made on Friday for 346 pence in cash and 0.0417 new REA shares suggested an increase of 10 pence, or 1.3 percent, in value, according to Rightmove.
As of 3:15 p.m., Rightmove shares were down 8 points, or 3.3 percent. me. London time. According to REA Group’s closing price on September, the most recent offer suggested a total offer value of 780p. thirty, as stated by Rightmove.
Beginning in early September, Murdoch’s News Corp.-owned Australian real estate listings company revealed that it was considering acquiring Rightmove. Following an initial offer of £5.6 billion, it made a final bid of approximately £6 billion ($8.1 billion), according to Reuters.
Prior to Melbourne-based REA Group announcing that it was dropping its plans for Rightmove, the U. G. To end the uncertainty surrounding the bidding process, the firm had urged REA to submit a final proposal.
Rightmove’s Chair Andrew Fisher stated, “The past few weeks have been extremely disruptive, as well as unsettling for our colleagues.”.
News Corp holds a more than 61 percent stake in REA Group, which runs several brands in India and the U.S. as well as a number of real estate websites in Australia. S. The business’s prior foray into the U. KK. experienced intense market pressure. Amid the global financial crisis in 2009, the company sold its real estate website, PropertyFinder Group, to rival Rightmove.
— Karen Gilchrest of CNBC contributed to this report.
