Domain to recommend CoStar takeover, grants due diligence

The news: Nine-controlled real estate platform Domain has entered into an exclusivity and process deed with US property group CoStar, after receiving an improved takeover offer by the suitor last week.

The numbers: CoStar increased its initial offer from $4.20 to $4.43 per share, valuing Domain at around $2.8 billion. Domain's shares last closed at $4.33.

The context: As Capital Brief reported on Sunday, CoStar will conduct due diligence over a period of four weeks.

As required by CoStar as a condition of its proposal, Domain has confirmed that each of its directors intends to unanimously recommend that the company's shareholders vote in favour of the scheme of arrangement.