CoStar raids Domain shares, eyes takeover
Make us a preferred source
Make us a preferred source on Google
The news: US property player CoStar has submitted a non-binding offer to acquire Domain after building a substantial stake in the real estate portal in an after market raid.
The numbers: CoStar secured 7.5% of Domain from a single shareholder at $4.20 a share, representing a 35% premium to the last trading price, and the highest closing price since August 2023.
Macquarie Capital acted on CoStar's behalf in the market after the close today to further lift its shareholding above 10%.
CoStar then made an indicative, non-binding offer to acquire the company for the same price - $4.20 per share, valuing Domain at about $2.6 billion.
The context:
Domain’s largest shareholder is Nine Entertainment with a 60% stake.
Domain is expected to respond to the offer tomorrow morning.
Last week, Bell Potter upgraded its rating on the Nine-controlled real estate platform from 'hold' to 'buy,' lifting its target price from $3.20 to $3.30.
The source: Capital Brief sources
