Gocompare rejects takeover offer from property group ZPG

Zoopla's offer has been rejected

Zoopla's offer has been rejected

Gocompare said in a statement ZPG's all-share offer "fundamentally undervalued" the company's prospects and its business, which enables consumers to shop around for financial, travel and utility services. ZPG said it is now "considering its position".

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.

A deal for GoCompare, which is known in Britain for its opera-themed Gio Compario television adverts, would expand ZPG's price comparison operations that already include Money.co.uk, which it bought in September, and uSwitch. The offer represented a 16 per cent premium on the closing price of the insurance comparison site the day before the proposal.

Gocompare demerged from British insurer esure Group Plc in November past year.

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".

British property group ZPG Plc on Tuesday said it had made a merger approach to Gocompare.com Group Plc which the price comparison website had rejected. GoCompare ended up 10% at 102.00 pence, valuing it at GBP426.7 million.