Shares up nearly 22% (Il Sole 24 Ore Radiocor) - London, 02 Sep - Shares in Rightmove rose sharply higher after the Australian real estate group REA said that it is considering a cash and share offer for its UK peer.

At 0935 GMT, Rightmove rose 21.71% to 676.20 pence.

"REA has not approached, nor had any discussions with, Rightmove regarding any potential offer," REA said in a statement.

REA's board "believes that there are clear similarities between REA and Rightmove in terms of their leading market positions in the core residential business, continued expansion and innovation of offerings across adjacent segments, leading audience share and strong brand awareness, as well as highly aligned cultural values." "REA sees a transformational opportunity to apply its globally leading capabilities and expertise to enhance customer and consumer value across the combined portfolio and to create a global and diversified digital property company, with number 1 positions in Australia and the UK.

"The REA board believes the enlarged group would represent a highly attractive investment opportunity for both REA and Rightmove shareholders, combining robust growth with strong margins and significant cash generation, enabling continued capital appreciation and shareholder returns. REA therefore considers that a combination of the two businesses would provide a significant opportunity to unlock shareholder value." REA warned that there is no certainty that an offer will be made.

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(RADIOCOR) 02-09-24 11:37:52 (0231) 5 NNNN