REA Group's further increased possible offer for Rightmove plc

REA Group Ltd (ASX:REA) has announced a further increased possible cash and share offer for the entire issued and to be issued share capital of Rightmove plc. The offer implies a total value of 770 pence for each Rightmove share, valuing Rightmove's entire issued and to be issued ordinary share capital at approximately £6.1 billion.

REA Group's CEO comments on the Further Improved Proposal

REA's CEO, Owen Wilson, stated, 'We believe that the combination of our world-leading expertise and technology with the attractive Rightmove business will create an enhanced experience for agents, buyers and sellers of property. We live in a world of intensifying competition and this proposed transaction would bring together two highly complementary digital property businesses for investment and growth. We have today increased our proposal to an implied value of 770 pence - 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. We are genuinely disappointed at the lack of engagement by Rightmove's Board and we strongly encourage the Rightmove Board to engage.'

Summary of REA Group's Further Improved Proposal

REA Group Ltd has made a further increased possible cash and share offer for the entire issued and to be issued share capital of Rightmove plc. The offer represents an increase of 9.2% on the total value of the Initial Proposal made to the Rightmove Board of Directors on 5 September 2024. REA firmly believes that the Further Improved Proposal represents a highly compelling proposition for Rightmove's shareholders at a significant premium to relevant trading metrics, providing a combination of immediate value certainty in cash and at the same time giving Rightmove shareholders the opportunity to benefit from the future value creation of the combined business. The cash component of the Further Improved Proposal is expected to be fully financed through long-term third-party debt and existing cash resources. REA reiterates its intention to apply for a secondary listing of all of its ordinary shares in London, which would enable trading in REA ordinary shares on both the London Stock Exchange and the Australian Securities Exchange in a fully fungible manner.