CoStar gets FIRB approval for $3b Domain acquisition
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The news: The Foreign Investment Review Board (FIRB) has given the green light for NASDAQ-listed property data business CoStar Group's proposed takeover of Domain.
The numbers: CoStar, through its subsidiary Andromeda Australia, is proposing to buy all shares it does not already own in Domain for $4.43 cash per share. The deal gives Domain an implied enterprise value of $3 billion. Domain shares last closed at $4.40.
The context: Domain told the market that FIRB had informed CoStar it “had no objections to the proposed scheme, subject to certain conditions that are acceptable to” the takeover suitor.
Domain shareholders will vote on the deal on 4 August. Nine Entertainment, which holds an interest of about 60.05% in Domain, intends to vote in favour of the scheme in line with the unanimous recommendation of the Domain board.
CoStar is already the second biggest shareholder in Domain with its 16.9% interest, although it will be excluded from the shareholder vote.
Former Domain chief executive Jason Pellegrino is set to lead the Australian subsidiary of the delisted company if the takeover scheme is passed by Domain shareholders.
The source: ASX
