Bid raised to $4.43 per share in "best and final" offer
Property platform Domain Holdings has announced its support for US property data company CoStar Group’s revised acquisition offer, valuing the company at $2.8 billion.
Domain’s board stated on Monday that it intends to unanimously recommend that shareholders vote in favour of the proposed scheme of arrangement, provided no superior offer emerges and an independent expert deems the deal fair.
CoStar recently increased its bid to $4.43 per share, a 5.5% premium over its initial $4.20 offer. The revised proposal is on a “best and final” basis.
As part of the process, Domain has granted CoStar exclusive access to due diligence, including entry to a virtual data room. The exclusivity period will last for four weeks, with an option to extend for an additional two weeks if needed.
Reuters reported that shares in Domain dropped 2.3% to $4.23 following the announcement, while Nine Entertainment, Domain’s largest shareholder, saw its stock fall 2.4% to $1.508 — its lowest point since Feb. 20. Nine Entertainment, which owns a 60% stake in Domain, had recently confirmed it was in discussions to offload its holding.
If approved, the acquisition would mark CoStar’s entry into the Australian market, potentially reshaping the real estate listings sector. Listing volumes have been under pressure due to high living costs dampening the previously buoyant housing market, although conditions are expected to improve as interest rates ease.
For years, Domain has struggled to keep pace with realestate.com.au, a larger competitor owned by News Corp-controlled REA Group. REA’s market capitalisation of $29 billion is nearly 10 times that of Domain, highlighting the competitive gap in the online property classifieds market.
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