U.S. Real Estate Firm CoStar Plans Bid for Australian Property Firm Domain Holdings
In a strategic move, U.S.-based real estate firm CoStar is reportedly preparing a A$2.7 billion (US$1.72 billion) bid for Australian property classifieds platform Domain Holdings, according to an unnamed source with direct knowledge of the matter.
CoStar has commenced acquiring Domain stock, securing approximately 19% of the company as of Thursday. The source revealed that the company had purchased shares at A$4.20 each and declined to disclose their identity due to the sensitive nature of the information.
A term sheet reviewed by Reuters, although lacking the identity of the stock buyer, indicated the suitor's intent to launch a full takeover by offering A$4.20 per share. This offer represents a 34.6% premium over Domain's closing share price of A$3.12 on Thursday.
At the time of writing, CoStar declined to comment on the matter, while Domain Holdings did not immediately respond to Reuters' request for a statement.