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Investing.com-- Domain Holdings Australia Ltd (ASX:DHG) said on Thursday it will engage with a bid from U.S. peer CoStar Group Inc (NASDAQ:CSGP) after the latter increased its offer for the Australian classifieds firm.
Costar is now offering A$4.43 per Domain share, up from its prior offer of A$4.20, although the new offer is at a small discount to Domain’s Wednesday close of A$4.47.
The deal values Domain at nearly A$2.80 billion ($1.76 billion).
Domain said the offer was Costar’s “best and final price.” The real estate listings firm said its board will engage in due diligence with Costar over the deal after a discussion with major shareholder Nine Entertainment Co Holdings Ltd (ASX:NEC). Nine holds a 60% stake in Domain.
Domain also recommended shareholders take no action on the deal.
Costar had in February approached Domain with a takeover bid, and had also disclosed a 16.9% stake in the Australian firm.
Costar is an American property analytics and information firm, and has no direct presence in Australia. Its bid for Domain likely represents a foray in the Australian property market, which has seen years of strong price growth amid a housing supply crunch in the country.