Zoopla-owner ZPG (ZPG) has made two takeover proposals for price comparison site operator GoCompare (GOCO) and both have been rejected on grounds that they undervalue the business.
GoCompare says it received a 110p per share proposal in shares on 26 May. After turning that down, ZPG came back on 8 November with a cash and shares deal also priced at 110p.
In addition to Zoopla, ZPG already has a home services switching specialist in uSwitch and recently acquired financial services comparison site Money.co.uk. It is clear founder Alex Chesterman has ambitious plans for the business.
We previously speculated about a tie-up between Moneysupermarket (MONY) and ZPG back in December 2015.
GoCompare today argues it has made significant progress in the year since its demerger from Esure (ESUR).
‘The board and I are extremely pleased with the transformation of the business that the management team has delivered since the demerger,’ says GoCompare chairman Peter Wood.
‘The continuing evolution into an entrepreneurial, innovation-focused technology company which we expect will create significant value for shareholders over the medium term by saving people everywhere time and money.
‘ZPG's proposal is highly opportunistic and fundamentally undervalues the company and its prospects.'
Under takeover rules, ZPG has to make a firm offer by 5pm on 12 December or walk away.
