REA Group's non-binding indicative proposal for Rightmove plc

REA Group Ltd (ASX:REA) has made a non-binding indicative proposal to the Board of Directors of Rightmove plc regarding a possible cash and share offer for the entire issued and to be issued share capital of Rightmove. The Proposal, made on 5 September 2024, was informed to have been rejected by the Rightmove Board on 10 September 2024. The Proposal implies a total offer value of 705 pence for each Rightmove share, representing a 27% premium to Rightmove's undisturbed share price of 556 pence on 30 August 2024.

REA Group's perspective on the Proposal

REA believes the Proposal represents a highly compelling proposition to unlock value for both Rightmove and REA shareholders by creating a global and diversified digital property company. The combined group is expected to have strong margins and significant cash generation, underpinned by number one positions in Australia and the UK. The Proposal aims to enhance customer and consumer value across the combined portfolio utilizing REA's globally leading capabilities and expertise. It also seeks to support Rightmove in accelerating expansion and benefit from knowledge transfer, leading technical capabilities, and targeted investment and innovation in a competitive market.

Summary of REA Group's Proposal and Outlook

REA Group's non-binding indicative proposal to acquire Rightmove plc at a 27% premium to its undisturbed share price demonstrates the company's ambition to create a global and diversified digital property company. The Proposal aims to unlock value for both Rightmove and REA shareholders, enhance customer and consumer value, and accelerate expansion in key areas. The enlarged group is expected to have strong margins, significant cash generation, and aims to positively contribute to the property market ecosystem. While the Proposal is non-binding and subject to customary conditions, including completion of due diligence, REA's intention to apply for a secondary listing of its ordinary shares in London reflects its commitment to providing a wider pool of investors with exposure to a global and diversified digital property company on the London Stock Exchange.