Domain and Nine say no revised offer from CoStar
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More news: Domain has confirmed it has not received a revised proposal from Nasdaq-listed CoStar, after a media report on Thursday claimed that bankers for major shareholder Nine Entertainment are discussing the sale of its 60% stake in the real estate platform.
Nine-owned Australian Financial Review reported that bankers for both Nine and CoStar are negotiating prices for Nine’s remaining holding in Domain, with Nine bankers willing to accept an offer at $4.65 per share.
Domain said it is continuing to consider CoStar's original proposal of $4.20 per share, tabled on 20 February. Domain noted that it is also engaged with Nine on the proposal, given that any deal would require the shareholder's support.
In a separate statement, Nine confirmed that it is in discussions with both CoStar and Domain regarding the proposal.
Nine noted that discussions remain "confidential and incomplete", including on the price at which CoStar might make a revised proposal.
Nine Entertainment in talks to sell 60% Domain stake to CoStar: AFR
The news: Nine Entertainment bankers are in talks to sell its controlling stake in Domain to CoStar, according to the Nine-owned Australian Financial Review.
The numbers: Nasdaq-listed CoStar tabled its $4.20 per share offer to the Domain board on 20 February after securing a 16.9% stake following an after-hours sharemarket raid.
The context: Sources told the AFR that bankers for both companies are now negotiating prices for Nine’s remaining 60% stake in Domain, with Nine bankers willing to accept an offer at $4.65 per share.
The price would value Nine’s stake in Domain at $1.76 billion, a 49% premium to what Domain’s stock was trading at before the CoStar offer.
Nine’s slow response to the initial offer has surprised onlookers, particularly after Nine's now permanent chief executive Matt Stanton met with CoStar founder and chief executive Andy Florance when he visited Sydney late last year.
Sources told the AFR that Domain chairman Nick Falloon has not engaged with Florance since an initial phone call, which could suggest Nine’s bankers are leading the talks.
The sources: AFR, Capital Brief, ASX
