European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The Board of <a href="https://www.smartkarma.com/entities/rightmove-plc" target="_blank" data-smartkarma-citation="entities:22116:1" rel="noopener">Rightmove PLC (RMV LN)</a> will consider <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a>'s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM EBITDA, 28x Fwd P/E).</li>
<li>Using 21.3x NTM EBITDA (comps) would indicate fair value of 805p, 4.5% increase to  current offer, implying 29.3x P/E, although proforma leverage would increase to 3.6x.</li>
<li>REA has not stated that the offer is final. Rightmove investors and Board may require further persuasion, as the implied probability of deal success is just 58%.</li>
</ul>


The Board of Rightmove PLC (RMV LN) will consider REA Group Ltd (REA AU)'s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM EBITDA, 28x Fwd P/E).
Using 21.3x NTM EBITDA (comps) would indicate fair value of 805p, 4.5% increase to  current offer, implying 29.3x P/E, although proforma leverage would increase to 3.6x.
REA has not stated that the offer is final. Rightmove investors and Board may require further persuasion, as the implied probability of deal success is just 58%.


REA/Rightmove: Third Proposal Seems Close to Fair Value

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>
<a href="https://www.smartkarma.com/entities/rightmove-plc" target="_blank" data-smartkarma-citation="entities:22116:1" rel="noopener">Rightmove PLC (RMV LN)</a>, UK's largest real estate portal, has twice rejected <a href="https://www.smartkarma.com/entities/rea-group-ltd" target="_blank" data-smartkarma-citation="entities:699:1" rel="noopener">REA Group Ltd (REA AU)</a> cash/scrip non-binding Offers this month.</li>
<li>REA has upped terms to 341 pence + 0.0422 new REA shares per Rightmove share, or 770p/share, a 39% premium. If completed, Rightmove's shareholders would own ~20.1% of the MergeCo.</li>
<li>Thrice rejected? I think Rightmove should engage. REA also has until the 30th September to make a formal Offer. Or walk away.</li>
</ul>



Rightmove PLC (RMV LN), UK's largest real estate portal, has twice rejected REA Group Ltd (REA AU) cash/scrip non-binding Offers this month.
REA has upped terms to 341 pence + 0.0422 new REA shares per Rightmove share, or 770p/share, a 39% premium. If completed, Rightmove's shareholders would own ~20.1% of the MergeCo.
Thrice rejected? I think Rightmove should engage. REA also has until the 30th September to make a formal Offer. Or walk away.


External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

Key points (machine generated)<ul><li>In 2008, Thistle933 successfully pitched Rightmove to investors despite a challenging real estate market.</li><li>Rightmove's business model, market position, and earnings power remained strong, leading to a compounded annual growth rate of 22% since the pitch.</li><li>However, recent underperformance by Rightmove's stock is attributed to competitor CoStar's acquisition of OnTheMarket, resulting in a 15% decline in RMV's stock and a lower five-year compounded annual growth rate of 2.5%.</li></ul>This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)In 2008, Thistle933 successfully pitched Rightmove to investors despite a challenging real estate market.Rightmove's business model, market position, and earnings power remained strong, leading to a compounded annual growth rate of 22% since the pitch.However, recent underperformance by Rightmove's stock is attributed to competitor CoStar's acquisition of OnTheMarket, resulting in a 15% decline in RMV's stock and a lower five-year compounded annual growth rate of 2.5%.This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

<ul>
<li>Hypermarket reshuffles as <a href="https://www.smartkarma.com/entities/jd-com-inc" target="_blank" data-smartkarma-citation="entities:29043:1" rel="noopener">JD.com (9618 HK)</a> and <a href="https://www.smartkarma.com/entities/dfi-retail-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:7427:1" rel="noopener">DFI Retail (DFI SP)</a> exit <a href="https://www.smartkarma.com/entities/yonghui-superstores-co-ltd" target="_blank" data-smartkarma-citation="entities:15910:1" rel="noopener">Yonghui Superstores (601933 CH)</a>; and <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd-d7b798e2-202d-4e01-9a1e-799e2ae8f0c7" target="_blank" data-smartkarma-citation="entities:28434:1" rel="noopener">Alibaba Group  (9988 HK)</a> potentially exits <a href="https://www.smartkarma.com/entities/sun-art-retail-group-ltd" target="_blank" data-smartkarma-citation="entities:401:1" rel="noopener">Sun Art Retail (6808 HK)</a>.</li>
<li>Evidently the influence of a younger hip third-generation tycoon-scion wasn't the panacea for <a href="https://www.smartkarma.com/entities/new-world-development" target="_blank" data-smartkarma-citation="entities:7037:1" rel="noopener">New World Development (17 HK)</a> and its ongoing issues in the HK/China property space.</li>
<li>MBK bumps the Tender Offer prices for <a href="https://www.smartkarma.com/entities/korea-zinc-co-ltd" target="_blank" data-smartkarma-citation="entities:17944:1" rel="noopener">Korea Zinc (010130 KS)</a> by 13.6% to ₩750,000 and <a href="https://www.smartkarma.com/entities/young-poong-precision-corp" target="_blank" data-smartkarma-citation="entities:16188:1" rel="noopener">Young Poong Precision (036560 KS)</a> by 25% to ₩25,000. What with the Choi's do?</li>
</ul>


Hypermarket reshuffles as JD.com (9618 HK) and DFI Retail (DFI SP) exit Yonghui Superstores (601933 CH); and Alibaba Group  (9988 HK) potentially exits Sun Art Retail (6808 HK).
Evidently the influence of a younger hip third-generation tycoon-scion wasn't the panacea for New World Development (17 HK) and its ongoing issues in the HK/China property space.
MBK bumps the Tender Offer prices for Korea Zinc (010130 KS) by 13.6% to ₩750,000 and Young Poong Precision (036560 KS) by 25% to ₩25,000. What with the Choi's do?


Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal

Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

<ul>
<li>In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.</li>
<li>We currently do not see any index changes for ASX 20 and ASX 100.</li>
<li>We see one change for ASX 100 and two changes for ASX 200 but the final result could depend on relative share price movements for the next two months.</li>
</ul>


In this insight, we take a look at the potential index changes for ASX200, 100, 50, and 20 in the run-up to the December 2024 index rebal event.
We currently do not see any index changes for ASX 20 and ASX 100.
We see one change for ASX 100 and two changes for ASX 200 but the final result could depend on relative share price movements for the next two months.


Quiddity Leaderboard ASX Dec 24: Three Changes Possible; New Long-Short Ideas

United Kingdom

Rightmove PLC operates a website that lists properties across Britain. The Company also publishes the House Price Index, which shows changes in house prices both annually and monthly and provides a view on the current state of the property market in England and Wales.

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Rightmove PLC (RMV LN)

REA/Rightmove: Third Proposal Seems Close to Fair Value

The Board of Rightmove PLC (RMV LN) will consider REA Group Ltd (REA AU)'s third proposal (implied value of 770p/share, 39% premium, 20.4x EV/NTM...

Jesus Rodriguez Aguilar

REA's Improved Terms For Rightmove

Rightmove should engage here. I'd be taking down borrow in REA. Terms are non-binding. REA has until September 30 to make a formal offer.

David Blennerhassett

Rightmove (RMV) - Tuesday, Nov 14, 2023

Rightmove's business model, market position, and earnings power remained strong, leading to a compounded annual growth rate of 22% since the pitch.

Value Investors Club

Last Week in Event SPACE: DFI/JD.com/Yonghui, Alibaba/Sun Art, New World Development, Austal

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Quiddity Leaderboard ASX Dec 24: Three Changes Possible; New Long-Short Ideas

There could be 5x-9x ADV to trade for the expected ADDs and DELs for ASX 200 in December 2024. We currently estimate one-way flow for the ASX 200...

Janaghan Jeyakumar, CFA

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