Rightmove working with UBS, Morgan Stanley after REA interest

Rightmove, the UK’s biggest property portal by market share, is working with UBS Group and Morgan Stanley on its response to unsolicited takeover interest from Australia’s REA Group, sources with knowledge of the matter said.

Rightmove is speaking to the banks about its next steps after REA Group, part of Rupert Murdoch’s sprawling empire, said it’s considering a possible cash and stock offer for the London-listed company, according to the sources. The British firm said on Monday (Sep 2) it has not received an approach yet from REA and told shareholders to take no action, without naming its advisers.

REA earlier disclosed that it’s working with Deutsche Bank. The German lender traditionally serves as Rightmove’s corporate broker but is now conflicted.

Shares of Rightmove soared 27 per cent on Monday in London, the biggest daily gain on record, boosting its market value to £5.6 billion (S$9.6 billion). REA fell 5.3 per cent in Sydney, the most since December 2022, giving it a market value of A$27.4 billion (S$24.3 billion).

Representatives for Rightmove, UBS and Morgan Stanley declined to comment. Under the UK takeover code, REA has until 5 pm on Sep 30 to announce a firm intention on whether to make a bid.

“A combination of the two businesses would provide a significant opportunity to unlock shareholder value,” REA said after media speculation about its plans to make an acquisition abroad.

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Australia’s REA Group considers buying UK-based Rightmove

While Rightmove enjoys the largest market share in the UK property portal market, rival OnTheMarket recently launched an expansion drive after being acquired by US real estate firm CoStar Group. BLOOMBERG