Credit: Marin Tulard via Unsplash
Nine Entertainment is reportedly pushing hard for a better price from the CoStar Group which wants to buy online property classified site Domain.
The US-based property group has offered $4.20 a share, valuing Domain at $2.7 billion.
The Nine-owned Australian Financial Review reports that Nine is willing to do the deal at $4.65, which would give Nine $1.76 billion for its 60% of Domain.
In a statement to the ASX, Nine confirmed discussions with CoStar Group Inc in relation to the unsolicited proposal to acquire Domain.
“Discussions remain confidential and incomplete (including as to the price at which CoStar might make a revised proposal)," Nine said.
“There is no certainty that the discussions will lead to a revised proposal from CoStar. Nine continues to assess the proposal, including the strategic value of Domain to Nine, with a focus on the best interests of Nine shareholders.”
Nine is being advised by investment bank Jefferies Australia and law firm Ashurst.
CoStar last month made an on market raid to acquire 16.9% of Nine. The bid at $4.20 cash a share was a 35% premium from the last share price before the offer.
Nine Entertainment's share price jumped, as did Domain’s, in the wake of the takeover bid.
Domain reported last month a 7.4% lift in revenue to $217.2 million for the half year to December, and net profit was up 28% to $33.1 million.
Then the company said it was strengthening collaboration with Nine, with cross platform branding opportunities during the recent Australian Open.
“We have also leveraged the power of Nine in the launch of a Victorian edition of Prestige magazine,” Domain said.
Nine reported a slide in profit in a challenging advertising market with revenue up just 1% in the six months to December.
Revenue was $1.39 billion for the half year, while net profit after tax fell 25% to $112.2 million.
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