LONDON (Alliance News) – GoCompare Group PLC on Tuesday confirmed that ZPG PLC made an unsolicited approach about combining the two businesses last week which valued the firm at roughly about GBP460.2 million.
ZPG said earlier Tuesday that it made an approach to GoCompare Group last Wednesday about possibly combining the two businesses, but said this was rejected. ZPG said it is now “considering its position”.
GoCompare, responding, said the proposal envisaged an offer at 110.0 pence per share, which GoCompare said “fundamentally undervalues” the business as it was trading at that price less than one month ago. The proposal is a 16% premium to the closing share price the day before the approach was made, however.
ZPG operates some of the UK’s most well-known digital platforms, including Zoopla, USwitch, PrimeLocation, Money, Hometrack, and The Property Software Group. It’s market capitalisation is more than three times that of GoCompare, which was spun off by esure Group PLC last year.
GoCompare said it has made “significant progress” since demerging, and on Tuesday reiterated its prospects for the full year and that current trading is in line with expectations.
“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,” said GoCompare Chairman Peter Wood.
ZPG shares closed up 0.5% on Tuesday at 338.0 pence, valuing the firm at GBP1.48 billion. GoCompare ended up 10% at 102.00 pence, valuing it at GBP426.7 million.
By Joshua Warner; email@example.com; @JoshAlliance
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