It is certainly now more aligned with similar cash+share offers which tend to have lower premiums as the target shareholders get to partake in the future upside. Maybe the board now engages and a final (4th offer) will emerge that will get a recommendation.
This morning the Australian property websites group REA Group, part of News Corp, announced that it’s considering a possible cash and share offer for London-listed Rightmove. No indicative offer price was provided. The most comparable deal is Silver Lake’s £2.5 billion bid for Zoopla owner ZPG Plc in 2018. Applying the same unaffected share price premium of that deal (30.6%) to Rightmove would give an offer price of 726p, whilst applying the same EV/EBITDA multiple (23.1X) would value Rightmove at £6.3 billion, equating to around 798p per share. #manda #mergersandacquisitions #rightmove #londonstockexchange