The Foreign Investment Review Board has approved CoStar Group’s acquisition of Domain Holdings, clearing a major regulatory hurdle ahead of the shareholder vote scheduled for August 4.
- FIRB grants conditional approval for CoStar’s acquisition of Domain
- Domain Board unanimously recommends shareholders vote in favor
- Controlling shareholder Nine Entertainment backs the scheme
- Scheme meeting set for August 4 as a hybrid event
- Approval subject to shareholder, court, and other conditions
Regulatory Green Light for CoStar’s Acquisition
Domain Holdings Australia Limited has received a crucial nod from the Foreign Investment Review Board (FIRB), signaling government acceptance of CoStar Group’s proposed $2.8 billion acquisition. This approval satisfies a key condition precedent for the scheme of arrangement, bringing the transaction one step closer to completion.
While the FIRB’s clearance comes with certain conditions, these have been deemed acceptable by CoStar, removing a significant regulatory obstacle that had the potential to delay or derail the deal. The announcement marks a pivotal moment for Domain, a leading player in Australia’s online real estate services sector.
Strong Support from Board and Major Shareholder
The Domain Board has unanimously recommended that shareholders vote in favor of the scheme, provided no superior proposal emerges and the Independent Expert continues to endorse the transaction as being in shareholders’ best interests. This unified backing from the board adds weight to the acquisition’s prospects.
Notably, Nine Entertainment Co. Holdings Limited, Domain’s controlling shareholder with a 60.05% stake, has also confirmed its intention to support the scheme under the same conditions. Nine’s endorsement is critical given its substantial voting power, effectively shaping the outcome of the upcoming shareholder meeting.
Next Steps, Shareholder Meeting and Court Approval
The next milestone is the Scheme Meeting scheduled for August 4, 2025, which will be conducted as a hybrid event allowing shareholders to participate either in person or virtually. Eligible shareholders are encouraged to vote, with proxy forms due by August 2.
Following shareholder approval, the scheme will require court sanction and fulfillment of other conditions outlined in the Scheme Booklet. Investors and market watchers will be closely monitoring these developments, as the acquisition promises to reshape the competitive landscape of Australia’s real estate technology sector.
Domain shareholders are advised to review the Scheme Booklet and Independent Expert’s Report carefully before making their voting decisions. The company has also provided dedicated contact points for shareholder inquiries, underscoring the importance of informed participation in the process.
Bottom Line?
With FIRB approval secured, all eyes now turn to the shareholder vote that will decide Domain’s future under CoStar’s ownership.
Questions in the middle?
- What specific conditions did FIRB impose on the acquisition, and could they impact integration?
- Will any rival bidders emerge before the shareholder meeting to challenge CoStar’s offer?
- How will CoStar’s ownership influence Domain’s strategic direction and market positioning?