REA Group (ASX:REA) announced a further increased possible cash and share offer for the entire issued and to be issued share capital of Rightmove.
The new proposal values each Rightmove share at 770 pence and the entirety of its share capital at approximately £6.1 billion ($11.93 billion).
REA's initial proposal on Sept. 5 was at 705 pence per share, followed by a revised offer of 749 pence per share on Sept. 16, which was subsequently rejected by Rightmove's board.
The latest offer, made on Sept. 22, represents a 9.2% increase from the initial proposal and a 43% premium to Rightmove’s 24-month average share price.
REA's CEO, Owen Wilson, said, "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."
He urged Rightmove's board to engage in discussions, stating the proposal provides immediate value and future growth opportunities.
Under the terms, Rightmove shareholders would receive 341 pence in cash and 0.0422 new REA shares for each Rightmove share.
Post-transaction, Rightmove shareholders are expected to hold approximately 20% of the combined group's issued share capital.
REA emphasised its readiness to engage with Rightmove's board, highlighting the strategic and financial benefits of the proposed transaction for shareholders of both companies.