Nine Entertainment-controlled real estate group Domain has finalised a $3 billion takeover agreement with its US partner CoStar.
Under the binding scheme implementation deed, CoStar — which already holds a 16.9 per cent stake in Domain — will offer $4.43 in cash per share, adjusted for any special dividend.
Board and shareholder support
Domain’s board has given its unanimous support for the deal, recommending shareholders vote in favour, provided there is no superior offer and subject to an independent expert’s assessment.
Majority owner Nine Entertainment has also indicated its intention to support the scheme, subject to the same conditions.
“We’re pleased to have reached an agreement with Domain and to see Nine’s support of this transformative transaction,” CoStar chief executive Andy Florance said. “With our technology, scale, and the innovation we’re known for, we see a tremendous opportunity to enhance the Australian property market.”
Share prices and dividend outlook
Nine shares last traded at $1.49, while Domain shares stood at $4.25.
Following the sale, Nine plans to return a portion of the net cash proceeds to shareholders through a special, fully-franked dividend — expected to range between 47c and 49c per share, based on an assumed Domain dividend of 10c per share.
This special dividend will be in addition to any final dividend Nine declares for the 2025 financial year. The company told shareholders it supports Domain’s move to proceed with the CoStar offer.
Strategic value and completion timeline
“As the controlling shareholder of Domain and with a focus on the best interests of Nine shareholders, Nine supports Domain’s decision to enter into the scheme deed.”
Following a comprehensive review, Nine concluded that the deal accurately reflects the strategic value of its holding in Domain.
The transaction is anticipated to be completed in the third quarter of 2025, pending standard conditions. Upon completion, Nine expects to receive approximately $1.4 billion in net cash proceeds after capital gains tax, leaving it in a strong net cash position.
Nine shares last traded at $1.49; Domain at $4.25.