Domain Holdings receives $2.7b takeover offer from US-based CoStar Group
Digital property portal operator Domain Holdings Australia (ASX: DHG) has told shareholders not to take any action after receiving an unsolicited takeover offer from America’s CoStar Group.
CoStar – a NASDAQ-listed provider of commercial and residential real estate information, analytics and online marketplaces to the US and European markets – has lodged a non-binding indicative proposal to acquire 100% of the issued capital of Domain at $4.20 per share.
The American company has also revealed that its proposed price will be adjusted for any dividends declared or paid by Domain prior to completion of the proposed transaction, excluding the $0.02 announced on 13 February 2025.
Significant shareholder
As at 20 February 2025, CoStar had acquired 16.9% of Domain’s ordinary shares.
Implementation of CoStar’s proposal is conditional on it entering into an agreed scheme implementation agreement (SIA) with Domain on customary terms.
CoStar says its SIA would likely be conditional on approval from the Foreign Investment Review Board.
The Domain board has commenced an assessment of CoStar’s proposal and advised its shareholders that they do not need to take any action in relation to CoStar’s proposal at this stage.
Interim CEO named
Domain announced on 23 October 2024 that current chief executive officer and managing director Jason Pellegrino would be stepping down after six years leading the business.
The company has since named Greg Ellis as interim chief executive officer while it continues its search for a permanent appointment.
Mr Ellis – who has been on the Domain board since November 2017 and will continue in this capacity during the secondment – steps into the position on 17 February 2025 and has committed to the role for a period of up to 12 months.
Mr Pellegrino committed to stay with the company for up to six months through the FY25 half-year results period and transition to a new leader.
His final day with the company will be 28 February.