Go Compare rejects £460m Zoopla-owner bid

rejected

ZPG made unsolicited approaches to buy the aggregator which were “unanimously and unequivocally rejected” by the board according to a statement from Go Compare.

Go Compare has rejected an unsolicited bid by Zoopla and USwitch owner ZPG to buy the price comparison website in a deal which would have valued the business at 110p per share.

The aggregator, which completed a demerger from Esure last year, released a statement noting: “Go Compare Group confirms that on 8 November 2017 ZPG made an unsolicited approach regarding a potential acquisition of the Company for a consideration of 110p per Go Compare share in a combination of cash and shares.”

The board “unanimously and unequivocally rejected” the approach because it “ fundamentally undervalues GoCompare and does not reflect the strong growth prospects of the company”.

The shares closed for trading on 8 November at 93.5p meaning the bid was at an 18% premium and valued the business at in the region of £460m.

Transformation
Sir Peter Wood, Go Compare chairman, commented: “The Board and I are extremely pleased with the transformation of the business that the management team has delivered since the demerger.

“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.”

The proposal followed an initial unsolicited approach by ZPG in May, which also valued GoCompare at 110p per share with the consideration wholly in ZPG shares.

The statement continued: “This was unanimously and unequivocally rejected by the Board of GoCompare which believed that it fundamentally undervalued the business and its prospects. Since May, GoCompare has delivered H1-2017 results which were ahead of expectations.”

According to the statement, the announcement was made without the approval of ZPG.

For all the latest industry news direct to your inbox, sign up for our daily newsletter.

  • LinkedIn  
  • Save this article
  • Print this page  
blog comments powered by Disqus

You need to sign in to use this feature. If you don’t have an Insurance Age account, please register now.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: