Australian digital advertising company, REA Group Ltd (RPGRF, RPGRY), confirmed on Monday, in response to press speculation, that it is contemplating a potential cash and share offer for the British online real estate platform, Rightmove Plc (RMV.L).
However, REA clarified that it has neither approached nor engaged in any discussions with Rightmove regarding a potential offer.
The company advised its shareholders to refrain from taking any action at this stage, emphasizing that there is no certainty that an offer will be made, nor any assurance regarding the terms of such an offer.
REA's Board highlighted that the company and Rightmove share several commonalities, including their market positions within the core residential sector, ongoing expansion and innovation in adjacent segments, audience share, strong brand recognition, and closely aligned cultural values.
An acquisition of Rightmove would create an enlarged group, presenting a highly attractive investment opportunity for shareholders of both companies. This combination is expected to deliver robust growth, strong margins, and significant cash generation, which would drive continued capital appreciation and shareholder returns.
Furthermore, REA stated that acquiring Rightmove would enhance the UK property experience for buyers, sellers, and renters. This move would support Rightmove's vision "to give everyone the belief they can make their move" and is anticipated to positively impact the property market ecosystem through investment and innovation.
REA must announce a firm intention to make an offer for Rightmove or declare that it does not intend to make an offer by no later than September 30, which marks the 28th day following the date of this announcement.
