Nine Entertainment set for $900m boost from property arm Domain’s sale to CoStar

Australia’s Nine Entertainment is poised to receive A$1.4bn (US$900m) through the sale of its property listings portal, Domain, to US property giant CoStar.

Matt Stanton

After weeks of due diligence by the bidder, which took a 16.9% stake in Domain in February, the pair have negotiated a sale valued at A$3bn.

The transaction follows the announcement on March 31 that Australian Securities Exchange-listed Domain had entered into an exclusivity and process agreement with CoStar for the latter to acquire 100% of Domain.

Nine Entertainment, Domain’s largest shareholder, led by CEO and MD Matt Stanton, has supported the deal, which will see the media company receive A$1.4bn for its 60.1% stake.

The acquisition will be subject to a shareholder vote in mid-August and regulatory approval from parties including the Australian Competition and Consumer Commission and the Foreign Investment Review Board.

Domain chair and non-executive director Nick Falloon said: “The Domain board has carefully considered the CoStar proposal and believes it represents compelling value and a high degree of certainty for Domain shareholders, through the cash offer and limited conditionality. This proposal is an endorsement of the strong fundamentals of Domain, and we are confident this position will be further strengthened with CoStar’s support.”