ZPG is refusing to increase its rejected bid to buy comparison website GoCompare.
Earlier this month GoCompare turned down an unsolicited takeover offer from ZPG which valued the price comparison business at around £420m. The firm said the proposal “fundamentally undervalues GoCompare and does not reflect the strong growth prospects of the company.”
Now ZPG - which already owns the uSwitch comparison site - has made clear it is not going to increase its offer.
A statement from ZPG to the City and shareholders yesterday afternoon said:
“Further to the announcements by ZPG Plc ("ZPG") and Gocompare.com Group plc ("GoCompare") in relation to ZPG's possible offer for the entire issued and to be issued share capital of GoCompare, ZPG confirms that it does not intend to make a further offer for GoCompare and is consequently bound by the restrictions under Rule 2.8 of the Code.
“ZPG continues to take a disciplined approach to capital allocation to ensure that investments, including acquisitions, are made in the best interests of ZPG shareholders.
“This announcement is made in accordance with Rule 2.8 of the Code. ZPG reserves the right to announce an offer or possible offer, or participate in an offer or possible offer for GoCompare, and / or take any other action which would otherwise be restricted under Rule 2.8 of the Code within six months after the date of this announcement either with the consent of the board of GoCompare, if a third party announces a firm intention to make an offer for GoCompare, if GoCompare announces a "whitewash" proposal or a reverse takeover, or if the Panel determines that there has been a material change of circumstances.”