Court Approval Unlocks Special Dividend but Raises Questions on Domain’s Future
Domain Holdings Australia has announced an unconditional special dividend following the Supreme Court of New South Wales' approval of its acquisition scheme by CoStar Group. The dividend will be paid in mid-August, marking a key milestone in the takeover process.
- Supreme Court of NSW approves Scheme of Arrangement
- Special fully franked dividend of AUD 0.088 per share declared
- Dividend record date set for 12 August 2025
- Dividend payment scheduled for 19 August 2025
- Acquisition by CoStar Group becomes effective after ASIC lodgement
Court Approval Clears Path for Dividend
Domain Holdings Australia Limited (ASX, DHG) has confirmed that the Supreme Court of New South Wales granted approval for its Scheme of Arrangement on 6 August 2025. This legal endorsement is a crucial step in the company’s proposed acquisition by CoStar Group, Inc., a global leader in real estate information services.
The court’s order, lodged with the Australian Securities and Investments Commission (ASIC) on 7 August 2025, satisfied the final condition required for Domain to declare a special dividend. This dividend, previously conditional on the scheme’s effectiveness, is now unconditional and set to be paid to shareholders later this month.
Details of the Special Dividend
The special dividend amounts to AUD 0.088 per ordinary share and is fully franked, reflecting Domain’s commitment to returning value to its shareholders amid the acquisition process. The record date for entitlement to this dividend is 12 August 2025, with the ex-dividend date falling on 11 August 2025. Payment will be made on 19 August 2025.
This dividend does not relate to any specific financial period but is part of the arrangements outlined in the Scheme Implementation Deed between Domain and CoStar, announced earlier this year. The fully franked nature of the dividend means shareholders will receive a credit for the tax already paid by Domain on these earnings, enhancing the dividend’s attractiveness.
Implications of the Acquisition
The acquisition by CoStar Group, executed through its subsidiary Andromeda Australia SubCo Pty Limited, represents a significant consolidation in the property services sector. Domain’s integration into CoStar’s global platform is expected to bring enhanced technology and data capabilities to the Australian market.
While the announcement focuses on the dividend and the legal approval of the scheme, investors will be keenly watching for further updates on the operational and strategic impacts of the takeover. The successful court approval and dividend declaration mark a positive milestone, but the full implications for Domain’s future performance remain to be seen.
Bottom Line?
With the acquisition scheme now effective and the special dividend declared, Domain’s shareholders await the next phase of integration and value creation under CoStar’s ownership.
Questions in the middle?
- How will the acquisition by CoStar impact Domain’s long-term growth prospects?
- What operational changes can shareholders expect post-acquisition?
- Will there be further dividends or capital returns following this special payment?