The Estate Agent Today have written an interesting article on the sale of Rightmove shares by one of the Nation’s largest estate agency chains, Connells.
The revelation came only 12 hours after Rightmove announced that it has renewed its agreement with Connells, for it to continue listing on the portal until 2012.
Connells, one of the original shareholders in Rightmove, had been at the centre of City rumours that it was trying to sell its shares. Halifax and Countrywide have already disposed of their holdings.
According to to the stock market announcement this morning, Connells has sold 21m shares in Rightmove. These, representing a 18% holding, have been placed at 155p.
The announcement comes at a time when many agents are threatening to stop listing their properties on the portal, although from last night’s announcement, it is clear that Connells will not be amongst these departures.
David Livesey, Connells group chief executive, said: “We have listed our customers’ properties on Rightmove from the start. Rightmove has become and will remain the leading UK property website.
“With its unparalleled reach, Rightmove is something house sellers expect from their agent. Rightmove is an essential element of our marketing. Signing up now for a long-term deal gives us certainty of cost, and this has a clear value to us.”
Rightmove’s managing director, Ed Williams, said: “In such a challenging housing market, Connells recognises the value that Rightmove brings.”
Rightmove, which has announced redundancies in its staff, is to start its biggest-ever advertising campaign on television on Boxing Day.
Shares in Rightmove, which listed on the stock market in March 2006, have fallen from their high of 540p in February and this morning were 163p, down 21p. Had Connells sold when the shares were at 500p, they would have raised £105m. At 155p, the sum raised is in the region of £32.55m.
