FTSE 250-listed ZPG – which also owns uSwitch – tabled a cash-plus-shares offer of 110p a share which valued Gocompare at almost £420mln.
Gocompare dismissed the bid out of hand, labelling it “highly opportunistic” and telling investors that it “fundamentally undervalues the company”.
ZPG made initial approach back in May
It is the second time Gocompare has fended off interest from ZPG this year, claiming that a previous “unsolicited approach” was also rejected back in May.
At that time, ZPG also valued the company at 110p a share, although the offer was wholly in shares.
The most recent approach represents a 16% premium to Gocompare’s closing share price of 95p on November 7, the day before ZPG put forward its proposal.
But Gocompare pointed out that the offer is a discount to its share price of 110.5p which it closed at as recently as October 11.
ZPG "considering its position"
After this latest pushback, ZPG said it is “currently considering its position”.
As part of the City takeover code, ZPG has until December 12 to either revive its interest or tell the markets that it won't be lodging another bid.
Gocompare shares rose 1.96% to 104p, while ZPG fell 1.54% to 332.80 in Wednesday's afternoon session.