
CoStar wins parental approval for $3bn Domain marriage

United States real estate information provider CoStar clearly liked what it saw when it looked under the bonnet at Domain Holdings, making an agreed offer that has won the ascent of the digital real estate company’s parent company, Nine Entertainment. Domain said it had entered into a binding Scheme Implementation Deed for CoStar to buy the 83.1% of Domain it does not already own by way of a Scheme of Arrangement, taking it private after eight years on the Australian Securities Exchange (ASX), if approved by shareholders. The offer of $4.43 per share, less any special dividend declared or paid after today, values Domain at an implied enterprise value of A$3.0 billion (US$1.92 billion). The Domain Board has unanimously recommended that shareholders vote in favour of the Scheme, without a superior proposal, and subject to an Independent Expert concluding it is in the best interests of shareholders. Nine, which owns 60% of Domain, has advised Domain it will vote in favour of the Scheme at a shareholders' meeting in mid-August, subject to the same conditions as the Board made. The offer was at a premium of 42.0% to the ‘undisturbed’ share price of $3.12 per share before CoStar made its initial offer on 21 February, 50.2