Costar ups bid for Domain, Nine sends positive signal
Global real estate listings giant Costar has upped its bid to $4.43 plus 4c in franking credits for Nine’s listing platform Domain, according to an ASX filing by Domain.
The non-binding offer was followed by a unanimous decision by the Domain board to begin the due digilence process.
Nine, which owns 60% of Domain, signalled its approval in an ASX statement.
“Nine notes that, as the controlling shareholder of Domain and with a focus on the best interests of Nine shareholders, it is supportive of Domain’s decision to grant due diligence access to CoStar at the increased offer price of $4.43 per Domain share, plus up to $0.04 per share of additional value by way of franking credits,” Nine’s statement read.
CoStar, run by US billionaire Andy Florance, acquired a 16.9% stake in Domain at $4.20 each — a 34.6% premium — in the initial phase of his takeover in February.
Nine noted in its ASX filing that if the Domain sale goes ahead at the new price, it will make $1.4b. Nine currently has debts of $628.5m according to its annual report.
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