SYDNEY: CoStar Group, Inc. has submitted an improved non-binding proposal to acquire all shares of Domain Holdings Australia Limited for $4.43 per share in cash, up from its initial offer of $4.20. The new bid represents a 42% premium over Domain’s closing share price on Feb. 20, the last trading day before the original proposal was announced.
The offer, described as CoStar’s “best and final” in the absence of a competing bid, also includes the potential for eligible shareholders to receive up to $0.04 per share in additional value through franking credits.
Domain’s board has unanimously agreed to engage with CoStar for due diligence, pending the execution of confidentiality and exclusivity agreements.
Key conditions of the revised proposal require Domain’s directors to recommend the deal unless a superior offer emerges and to finalize an implementation agreement by 7 p.m. Sydney time on March 28. The transaction may also allow for a pre-completion special dividend, which would reduce the cash consideration accordingly.
Domain, advised by UBS Securities Australia and Gilbert + Tobin, cautioned that no binding agreement has been reached. Shareholders are advised to await further updates.