Nine 'will consider' CoStar's move to acquire Domain
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More news: Media group Nine Entertainment said it will consider a takeover proposal from US property firm CoStar for real estate platform Domain, in which it holds a 60% stake.
"Domain is of strategic importance to Nine's media ecosystem and our long-term growth strategy," Nine said in a statement.
"Nine will consider the proposal with a focus on the best interest of Nine shareholders."
CoStar has submitted a non-binding indicative offer to acquire the shares it doesn’t already own in Domain for $4.20 each, a 34% premium to its last closing price, valuing the company at around $2.6 billion.
Domain shares jump 40% on CoStar takeover offer
More news: Shares in Domain Holdings and its majority shareholder Nine Entertainment rocketed in early trading after US property player CoStar submitted a non-binding offer to acquire the real estate platform.
Domain shares were up 40% to $4.37 at 10:35am AEDT. Nine, which holds a 60% stake in Domain, surged 17.7% to $1.70, making it the best performing ASX 200 company at the start of trading.
Meanwhile, shares in Domain rival REA Group, and its largest shareholder News Corp, tanked.
REA shares dropped 10.9% to $237.44, making it the worst performing ASX 200 stock, while News Corp, down 6.6% to $51.32, was third worst performing on the index.
Domain confirms CoStar’s $2.6b cash bid, says it's under review
The news: Domain confirmed that US property player CoStar has submitted a non-binding indicative offer to acquire the shares it doesn’t already own in the real estate portal for $4.20 each, a 34% premium to its last closing price.
Domains’ board has started an assessment of the bid and will appoint advisors for the process, it said.
The context: The bid values the company at about $2.6 billion and comes after CoStar on Thursday secured 16.9% of Domain at the same price — the highest closing price since August 2023.
The proposed price will be adjusted for any future dividends declared or paid by Domain before the deal is completed, Domain said.
CoStar’s proposal is conditional on completing due diligence on an exclusive basis and on the unanimous approval of the Domain directors, the target company said.
Domain’s largest shareholder is Nine Entertainment with a 60% stake. CoStar's move comes while Domain chairman Nick Falloon is overseas on a family holiday and interim CEO Greg Ellis is just days into the job.
