Domain (ASX: DHG) Receives $4.20 Per Share Takeover Proposal from CoStar

Sydney, 21 February 2025 – Domain Holdings Australia Limited (ASX: DHG) has received an unsolicited, non-binding indicative takeover proposal from US-based CoStar Group, Inc. (NASDAQ: CSGO) to acquire 100% of Domain’s shares at $4.20 per share in cash.

The all-cash offer represents a significant premium to Domain’s recent trading levels and comes after CoStar quietly acquired a 16.9% stake in Domain on 20 February 2025 at the same price.

Key Takeover Proposal Details

  • Offer Price: $4.20 per share, adjusted for any future dividends (except for the 2.0c dividend announced on 13 Feb 2025).
  • Acquirer: CoStar Group, Inc., a leading online real estate marketplace operator based in the US.
  • Acquired Stake: CoStar now owns 16.9% of Domain’s ordinary shares.
  • Conditions: The proposal is non-binding and subject to:
  • No material adverse changes to Domain’s business.
  • Completion of due diligence (CoStar has requested exclusivity).
  • Unanimous approval from Domain’s board.
  • Final internal approvals from CoStar.
  • Foreign Investment Review Board (FIRB) approval.
    – Financing: CoStar does not require a financing condition to proceed.

What Happens Next?

Domain’s board is now assessing the offer and will appoint advisers to assist in the process. At this stage, shareholders do not need to take any action.

It’s important to note that there is no certainty this proposal will result in a transaction—but with CoStar already securing a 16.9% stake, this situation is one to watch closely.

Who is CoStar?

CoStar (NASDAQ: CSGO) is a major player in real estate marketplaces, information, and analytics, owning and operating residential and commercial real estate platforms in the US. This bid suggests a strategic expansion into the Australian market, with Domain potentially offering a strong local foothold.

Investor Takeaway

With Domain’s board now evaluating the offer, the big question will be whether CoStar’s bid is high enough or if a competing offer emerges. For now, shareholders should stay tuned for updates, as the deal moves through its due diligence phase.