Domain Holdings Australia (ASX:DHG) has agreed to provide CoStar Group with due diligence access after receiving a revised takeover offer valuing the real estate platform at $4.43 per share in cash.
The new proposal represents a 5.5% increase on CoStar’s initial $4.20-a-share bid made in February and a 42% premium to Domain’s closing price on 20 February. CoStar described the $4.43 offer as its “best and final” price, in the absence of a competing proposal.
Domain said its Board had unanimously agreed to engage with CoStar, subject to entering into confidentiality and exclusivity agreements. The deal remains non-binding, and there is no certainty it will proceed to a binding agreement.
The improved proposal also allows Domain to pay a pre-completion special dividend, potentially delivering up to $0.04 per share in franking credit value to eligible shareholders. Any such dividend would reduce the cash offer price on a dollar-for-dollar basis.
CoStar has requested that Domain’s directors confirm their intention to unanimously support the transaction and vote any shares they control in favour—pending the outcome of an independent expert report and absence of a superior proposal.
Domain’s largest shareholder, Nine Entertainment, which owns just over 50% of the company, has been consulted as part of the process.
Shareholders are not required to take any action at this stage. UBS and Gilbert + Tobin are advising Domain on the deal.
Shares are trading 4.25% lower at $4.28.
