REA Group Ltd is considering a takeover offer for Rightmove plc, a UK property portal with a market value of £4.38 billion (US$5.8 billion or RM24.90 billion), in a bid to create a global digital real estate company. 

The Australian property listing company, which is controlled by News Corp, said on Monday it’s considering a possible cash and share offer for Rightmove. REA said it had not approached Rightmove nor had any talks with the company about a bid. 

REA stock dropped as much as 7.7% before trading down 7.1% at A$203.54 (US$138 or RM596.20) at 11.12am local time. The decline trimmed REA’s market value to A$27 billion.

REA’s disclosure, triggered by media speculation, now forces the company into a decision one way or the other. Under the UK’s takeovers code, REA must announce a firm intention to bid, or not, for Rightmove by Sept 30 at 5pm London time.

“A combination of the two businesses would provide a significant opportunity to unlock shareholder value,” REA said in its statement.

REA said it would add “investment and innovation” to Rightmove following any acquisition. The enlarged group would deliver “robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns”, REA said. 

  - Bloomberg