Exclusivity granted as Domain signals support for $4.43 per share proposal
Domain Holdings (ASX: DHG) is one step closer to a potential takeover, today confirming it has granted exclusive due diligence access to US-listed CoStar Group as part of ongoing discussions over a proposed acquisition.
The move follows CoStar’s revised non-binding indicative proposal last week, offering $4.43 per share in cash for 100% of Domain via a scheme of arrangement — valuing the real estate listings business at around $2.3 billion.
Directors back the deal — for now
In a clear show of intent, Domain’s Board has unanimously confirmed its intention to recommend the deal to shareholders, provided two key conditions are met:
- No superior offer emerges during the process.
- An independent expert concludes the deal is in the best interests of shareholders.
That recommendation would also be subject to CoStar and Domain entering into a binding implementation agreement on terms no less favourable than what’s currently proposed.
The due diligence window is open
Under the terms of the Exclusivity Deed, Domain has now granted CoStar access to a virtual data room, kicking off a four-week exclusivity period. This may be extended by another two weeks if CoStar confirms its ongoing interest — or further if both parties agree.
The exclusivity means Domain can’t engage with any rival bidders during this period, giving CoStar a clear runway to finalise its offer.
What’s next?
While this is a big step forward, the deal isn’t done yet. The CoStar proposal remains non-binding and is still subject to:
- Completion of due diligence
- Final transaction documentation
- Standard regulatory and shareholder approvals
There’s no guarantee a formal agreement will be reached, and shareholders are being told they don’t need to take any action at this stage.
But today’s announcement does suggest momentum is building. With the board already leaning toward support, and CoStar moving swiftly through the process, Domain’s ownership may soon be shifting across the Pacific.
