(Reuters) – News Corp-backed property listing company REA Group said on Wednesday that Britain’s largest property portal Rightmove (OTC:) rejected its 5.6 billion pounds ($7.32 billion) buyout proposal.
Rupert Murchoch-owned REA did not cite any reason as to why its takeover offer was rejected by Rightmove.
Under the part cash, part scrip deal proposal, REA offered to pay a total of 705 pence for each Rightmove share, representing a premium of 27% to the U.K. company’s closing price of 556 pence on Aug. 30, after which REA confirmed discussions.
The proposal was non-binding and subject to customary conditions, including completion of due diligence to the satisfaction of REA.
REA further said it will look to apply for a secondary listing in London, which will give the company access to a wider pool of investors.
($1 = 0.7645 pounds)
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