Domain Holdings Australia Limited (ASX:DHG) Announces $3 Billion Acquisition Scheme with CoStar
Acquisition Details
Domain Holdings Australia Limited has entered into a binding Scheme Implementation Deed with CoStar Group, Inc., aiming to acquire 100% of Domain’s issued capital not already owned by Bidder Sub. The acquisition offers a cash consideration of $4.43 per share, valuing Domain at an implied enterprise value of $3.0 billion. This represents a 42.0% premium to the undisturbed share price of $3.12 per share.
Dividend Opportunity
The Domain Board may declare a fully franked special dividend of up to $0.10 per share, subject to the availability of franking credits. If paid, shareholders could benefit from franking credits of up to $0.04 per share.
Executive Comments
Domain Chair and Non-Executive Director Nick Falloon stated, “The Domain Board has carefully considered the CoStar proposal and believes it represents compelling value and a high degree of certainty for Domain shareholders, through the cash offer and limited conditionality.”
“This proposal is an endorsement of the strong fundamentals of Domain, and we are confident this position will be further strengthened with CoStar’s support.”
Board Recommendations
The Domain Board unanimously recommends that shareholders vote in favor of the Scheme, pending the conclusion of the Independent Expert. Nine Entertainment Co. Holdings Limited, Domain’s majority shareholder, intends to support the Scheme subject to the same conditions.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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