Rightmove shares surge after Murdoch-owned rival considers bid

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Rightmove shares soared yesterday after it was confirmed that an Australian rival majority-owned by Rupert Murdoch’s News Corp was interested in taking over the company.

REA Group announced on Monday morning that it is considering an acquisition offer to create a globally focused real estate company.

Any bid would likely be made in cash and shares, with REA saying (also confirmed by Rightmove) that no approaches have been made so far.

REA is 61% owned by News Corp, which owns its existing UK business including The Sun and Times newspaper brands under its News UK division.

Rightmove’s shares had a market capitalisation of nearly £4.4 billion at last Friday’s close, but rose 27.4% to 708 pence at the close of FTSE 100 trading on Monday, their highest level in two and a half years.

However, REA shares fell 8%.

Under UK takeover rules, any firm intention to make a takeover bid must be notified to the market by September 30.

Rightmove released the following statement late yesterday afternoon:

“Rightmove plc (“Rightmove” or the “Company”) has taken note of this morning’s announcement from REA Group Ltd (“REA”). Rightmove has not received any approach from REA regarding a potential takeover bid for the Company. Rightmove shareholders should take no action.

“Any takeover offer for Rightmove would be governed by the City Code on Takeovers and Mergers (the “Code”). Under rule 2.6(a) of the Code, REA must, by 5pm on 30 September 2024, either announce its firm intention to make a takeover offer for Rightmove in accordance with rule 2.7 of the Code, or announce that it has no intention to make an acquisition. In the latter case, the announcement will be treated as a statement to which rule 2.8 of the Code applies. This deadline may be extended with the consent of the Takeovers Committee pursuant to rule 2.6(c) of the Code.

“A further announcement will be made at the appropriate time.”

In accordance with regulation 2.9 of the City Code on Takeovers and Mergers, Rightmove added in a separate statement:

“Rightmove confirms that it has in issue 788,750,604 ordinary shares of 0.1 pence each (excluding 11,401,687 treasury shares). The International Securities Identification Number (ISIN) for Rightmove shares is GB00BGDT3G23.”

EYE breaking news: Rightmove is target of £4.4bn takeover bid from News Corp’s REA