Despite the fact that REA's offer was a 27% premium to its share price on August 30, Rightmove has come out and rejected the proposal.
👉 Background: Last week, it was revealed that REA Group was exploring a potential acquisition of Rightmove for $11 billion. That's UK's largest online real estate property portal listed on the London Stock Exchange.
👉 What happened: Despite the fact that this offer was a 27% premium to its share price on August 30, Rightmove has come out and rejected this offer. They claim the offer was “wholly opportunistic” and “fundamentally undervalued Rightmove and its future prospects. Ouch!
👉 What else: Now, REA Group is re-assessing its options for a revised offer, and if the deal goes through, it would has advised this it would likely apply for a listing for the joint group on the London Stock Exchange.
💡Global ambition demands a global stage. When a company re-lists on a new exchange like NASDAQ or the LSE, it opens the door to a whole host of new opportunities.
💡 For many Australian companies, listing on a global exchange can give them access to a greater audience. And a greater audience can provide opportunities for more access to capital and greater liquidity.
💡REA Group wouldn’t be the only ASX-listed company to jump ship to another exchange or dual-list. Life360 dual-listed on the NASDAQ as well as the ASX in June this year to get exposure to a bigger market. And in 2019, Amcor moved their primary listing from the ASX to the NYSE.
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