The Domain Holdings Australia Ltd (ASX: DHG) share price is lower after receiving a larger takeover offer.
Domain owns and operates the second largest property portal in Australia.
Larger takeover offer
US business CoStar has decided to improve its offer to $4.43 per Domain share on a ‘best and final’ basis, in the absence of a competing proposal.
The improved offer comes after an earlier proposal from CoStar on 21 February 2025 to acquire all of Domain’s shares for $4.20 cash per share. So, the new offer is 5.5% higher than last time.
This improved offer is a 42% premium to the closing Domain share price on 20 February 2025.
Subject to any additional value that may be realised from franking credits attached to any dividend, this is the final dividend, in the absence of a competing proposal. Domain thinks it could unlock up to $0.04 per share of franking credits with a special dividend (which would reduce the offer by the cash amount of that dividend).
The offer still has conditions including unanimous recommendation by the board of directors and entering into an exclusivity and process deed.
Domain response
The property portal business said that after receiving the larger bid, and after discussions with Domain’s major shareholder Nine Entertainment Co Holdings Ltd (ASX: NEC), the Domain board has unanimously decided to engage with CoStar and facilitate due diligence access about Domain.
The Domain board said it will update shareholders and the market “in due course”. Shareholders don’t need to take any action according to Domain and there is no guarantee a binding agreement will be reached.
Final thoughts on the Domain share price
With how the Domain share price is down more than 4% today to under $4.30, investors seem to have been hoping for more.
For me, there are other ASX growth shares that offer more upside at the current level. I’d be happy to sell now considering this is the final offer and put the money into other ASX growth shares.
