Domain Trading Suspended as CoStar Acquisition Clears Legal Hurdle
Domain Holdings Australia’s acquisition by CoStar Group has been approved by the Supreme Court of NSW, triggering a trading suspension on ASX and setting key payment dates for shareholders.
- Supreme Court of NSW approves CoStar’s acquisition of Domain
- Trading in Domain shares suspended on ASX from 7 August 2025
- Fully franked special dividend of 8.8 cents per share payable 19 August
- Scheme consideration of $4.342 cash per share payable 27 August
- Scheme legally effective following lodgement of court orders with ASIC
Legal Approval Secures Acquisition
Domain Holdings Australia Limited has reached a pivotal milestone in its acquisition by US-based CoStar Group, Inc. The Supreme Court of New South Wales granted final approval to the scheme of arrangement, making the takeover legally effective as of 7 August 2025. This court endorsement is the last major regulatory hurdle cleared, paving the way for the transaction to proceed to completion.
Trading Suspension and Shareholder Payments
Following the court’s decision, trading in Domain shares on the Australian Securities Exchange (ASX) was suspended from the close of trading on 7 August. This suspension is standard practice in such acquisitions to maintain orderly market conditions. Shareholders are now preparing for two key payments – a fully franked special dividend of 8.8 cents per share scheduled for 19 August, and the scheme consideration payment of $4.342 cash per share expected on 27 August. The latter amount reflects the agreed acquisition price of $4.43 per share less the special dividend.
Implications for Shareholders and Market
For Domain shareholders, the acquisition offers a clear exit at a fixed cash price, providing certainty amid market volatility. The special dividend adds immediate value ahead of the scheme consideration payment. From a market perspective, the suspension of Domain’s shares removes a key player from the ASX’s real estate services sector, potentially reshaping competitive dynamics. CoStar’s entry into the Australian market through this acquisition signals its intent to expand its footprint in online real estate platforms.
Next Steps and Monitoring
While the scheme is now legally effective, the transaction’s final implementation awaits the record dates for dividend and scheme consideration payments. Investors will watch closely for any changes to these indicative dates. Additionally, analysts will be updating valuation models to reflect the acquisition’s impact on Domain’s financials and CoStar’s strategic positioning in the region.
Bottom Line?
With legal approval secured, Domain’s acquisition by CoStar marks a new chapter for both companies and their shareholders.
Questions in the middle?
- Will CoStar integrate Domain’s operations immediately or maintain it as a standalone brand?
- How will the acquisition impact Domain’s existing partnerships and customer base?
- Could this deal trigger further consolidation in the Australian online real estate sector?
