Domain’s ASX Trading Suspended as CoStar Acquisition Nears Completion
The Supreme Court of New South Wales has approved CoStar Group’s acquisition of Domain Holdings Australia, setting the stage for a significant ownership change and a special dividend payout to shareholders.
- Supreme Court approves CoStar’s scheme of arrangement for Domain acquisition
- Domain shares to be suspended from ASX trading post-approval
- Fully franked special dividend of 8.8 cents per share declared
- Shareholders to receive $4.342 cash per share on scheme implementation
- Scheme expected to become effective on 7 August 2025 with final payment on 27 August 2025
Court Approval Clears Path for Acquisition
Domain Holdings Australia Limited has reached a pivotal milestone in its acquisition journey, with the Supreme Court of New South Wales granting formal approval to the scheme of arrangement proposed by CoStar Group, Inc. This legal endorsement is a critical step that confirms the transaction’s compliance with regulatory and shareholder requirements, effectively greenlighting the takeover.
The approval means that, barring any unforeseen delays, the scheme will become legally effective once the court orders are lodged with the Australian Securities and Investments Commission (ASIC), anticipated on 7 August 2025. Following this, Domain shares will be suspended from trading on the ASX, signaling the transition period before the acquisition’s completion.
Financial Terms and Shareholder Returns
Shareholders of Domain can expect a fully franked special dividend of 8.8 cents per share, payable on 19 August 2025 to those holding shares as of 7, 00pm (AEST) on 12 August 2025. This dividend represents an immediate return ahead of the acquisition’s finalisation.
On the scheme’s implementation date, projected for 27 August 2025, shareholders (excluding any excluded parties) will receive a cash payment of $4.342 per share. This amount reflects the total scheme consideration of $4.43 per share less the special dividend already paid, effectively delivering the agreed acquisition price in cash.
Implications for Domain and the Market
The acquisition by CoStar, a global leader in commercial real estate information and analytics, marks a significant consolidation in the Australian online property platform sector. Domain’s integration into CoStar’s portfolio could bring enhanced technological capabilities and expanded market reach, potentially reshaping competitive dynamics.
For investors, the transaction offers a clear exit price with a premium reflected in the scheme consideration, coupled with a special dividend that sweetens the immediate return. However, the suspension of trading and eventual delisting of Domain shares will close the chapter on its independent public market presence.
Market participants will be watching closely as the final steps unfold, including the lodgement of court orders and the subsequent payments to shareholders. The smooth execution of these stages will be critical to maintaining confidence in the transaction’s completion.
Bottom Line?
With court approval secured, Domain’s acquisition by CoStar is set to reshape Australia’s property platform landscape, next up, shareholder payouts and market exit.
Questions in the middle?
- Will CoStar maintain Domain’s brand and operations post-acquisition?
- How will the acquisition impact Domain’s existing partnerships and product offerings?
- What are the longer-term strategic plans CoStar has for its expanded Australian footprint?
