REA Group's Withdrawal of Possible Offer for Rightmove

REA Group Ltd (ASX:REA) has officially withdrawn its fourth non-binding indicative proposal for a possible cash and share offer for the entire issued and to be issued share capital of Rightmove plc. This decision comes in response to Rightmove's rejection of the Fourth Proposal, which was made on 27 September 2024. REA Group confirms that it does not intend to make an offer for Rightmove, in line with Rule 2.8 of the City Code on Takeovers and Mergers (the 'Code').

REA Group's Strategic Rationale and Disappointment

REA's approach to Rightmove's Board was driven by a clear strategic rationale and the opportunity to create a global and diversified digital property company. The proposed combination aimed to provide Rightmove shareholders with the opportunity to participate in a fast-growing, diversified, global leader. However, the limited engagement from Rightmove impeded the ability to make a firm offer within the available timetable. REA's CEO, Owen Wilson, expressed disappointment with the lack of meaningful engagement from Rightmove, emphasizing REA's commitment to financial discipline and focus on pursuing other growth opportunities.

REA Group's Outlook and Commitment to Shareholders

REA Group remains committed to its capital allocation framework and maintains a disciplined approach to mergers and acquisitions. Despite the withdrawal of the possible offer for Rightmove, REA is confident in the growth potential across its core business, adjacent opportunities, and India. The company's full year financial results, released on 9 August 2024, revealed a significant increase in revenues and EBITDA, reflecting the strength of its growth potential. With a robust balance sheet and strong underlying cash flow, REA is well-positioned to fund growth across its portfolio. The company looks forward to pursuing other avenues for growth and generating further value for its shareholders.