GoCompare shrugs off takeover bid
GOCOMPARE has confirmed that it “unanimously and unequivocally” rejected an unsolicited takeover offer by ZPG, the company behind sites including uSwitch and Zoopla, earlier this month.
The price comparison group said the potential deal “fundamentally undervalues GoCompare and does not reflect the strong growth prospects of the company”.
It marks the latest unsolicited approach by ZPG this year, according to GoCompare, which said that it received an initial offer that valued the company at 110p per share back in May.
That proposal was also rejected by GoCompare’s board on grounds that it “undervalued the business and its prospects”.
GoCompare said that the most recent proposal by ZPG offered 110p per share in a combination of cash and shares. This represented a 16% premium to the closing share price of 95p on November 7, and a 3% premium to the three-month volume weighted average share price as of that date, which was one day before the proposal was received.