REA Group Boosts Offer for U.K. Property Platform Rightmove

By Mike Cherney

SYDNEY--News Corp-controlled REA Group increased its takeover offer for its U.K. counterpart Rightmove, continuing its effort to combine two of the English-speaking world's dominant real-estate listing websites.

Australia-listed REA said it is now offering 3.41 British pounds (US$4.54) in cash and 0.0422 new REA shares for each Rightmove share, for a total implied value of 7.70 pounds per share. The new offer values Rightmove's equity at 6.1 billion pounds, REA said.

REA's last offer for Rightmove implied a value of 7.49 pounds per Rightmove share, which REA said Rightmove rejected. REA said its initial offer for Rightmove valued Rightmove shares at 7.05 pounds each.

REA said the latest improved offer gives Rightmove shareholders a significant premium to relevant trading metrics.

"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," REA chief executive Owen Wilson said.

News Corp also owns Dow Jones & Co., the publisher of Dow Jones Newswires and The Wall Street Journal.

Write to Mike Cherney at mike.cherney@wsj.com

(END) Dow Jones Newswires

September 22, 2024 20:21 ET (00:21 GMT)

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