Australian real estate portal giant REA Group has withdrawn from plans to acquire Rightmove.
Over the past week, the company has made four proposals to Rightmove's board to acquire all of its capital through cash and stock takeover offers, but the company has said it will not make any further offers and has not made any hostile takeover bids. It was strongly suggested that the possibility of 
Nevertheless, REA Group parted ways after Rightmove repeatedly and categorically rejected its proposal, which had a clear strategic rationale and “strong profit margins and significant cash.” This presents an opportunity to build a global, diversified, digital real estate company with This is a generation fueled by our number one position in Australia and the UK. ”
Further, “REA believes that the proposed combination will enable Rightmove shareholders to meaningfully participate in a rapidly growing and diversified global leader, while enjoying value certainty in an operating environment facing increasing market competition.'' I think we have an opportunity.”
REA Group also criticized Rightmove's performance on behalf of shareholders, saying the company's share price “despite being supported by its ongoing share buyback program and the revised strategy announced at last year's Capital Markets Day. However, over the past two years, there has been a lack of sustained upward momentum.”
It also noted that REA Group's fourth offer was a 45% premium to Rightmove's 12- and 24-month volume-weighted average share price.
connivance of right movement
Nevertheless, REA Group has admitted that without Rightmove's connivance, the acquisition would never have been a “fair price”, meaning that it overpaid for its stake in the portal in order to persuade shareholders to switch sides. It suggests that it would have had to be done.
“With increasing global competition, we strongly believed there was an opportunity to create a globally diversified leader in digital property that would benefit both REA and Rightmove shareholders, so we We have approached the board,” said Owen Wilson, CEO of REA. main image)
“We were disappointed with the limited engagement from Rightmove and the inability to make a solid proposal within the available timeline. They have nothing to lose by engaging with us. did.
“We remain financially disciplined when considering M&A and reinvestment in our business, and remain focused on the many other opportunities ahead.”
REA Group's failed attempt has drawn the attention of Citi investment banking giant Panmure Liberium, which said the failed acquisition was evidence that Rightmove was undervalued as a company, and that it had recently They argue that this should serve as a warning to the US real estate giant CoStar, which has acquired the deal. I bought it at On the Market.
Influence of co-stars
Panmure Liberum analyst Sean Kealy said:
“CoStar’s OnTheMarket will not be able to replace Rightmove in the UK. We expect the company to be able to sign up distributors and ultimately take market share from Zoopla, but those Convincing stores to leave Rightmove is a difficult challenge.”
