Singapore – PropertyGuru Group announced its agreement to be acquired by EQT Private Capital Asia, the Asia-focused arm of Swedish investment firm EQT AB, in an all-cash deal valuing the company at around US$1.1b.
According to an official release, PropertyGuru’s Board of Directors, following the recommendation of a special committee, has unanimously approved the merger and will recommend shareholder approval. The special committee negotiated the merger terms with support from financial and legal advisors.
Each ordinary share of PropertyGuru will automatically convert under the merger agreement into the right to receive US$6.70 in cash per share, without interest, at the time the merger takes effect. Certain excluded shares will not be included in this conversion.
Additionally, the merger offer is 52% higher than PropertyGuru’s share price on May 21, 2024, before media speculation began. It also represents a 75% and 86% premium over the company’s 30-day and 90-day average share prices, respectively, leading up to that date.
PropertyGuru also revealed that major shareholders TPG and KKR, which together hold 56% of PropertyGuru’s outstanding shares, have agreed to support the merger by entering into voting and support agreements with the company and EQT Private Capital Asia.
Hari V. Krishnan, CEO and MD of PropertyGuru Group, said, “We are pleased to embark on this new chapter with EQT. This partnership follows years of transformative growth, supported by TPG and KKR, which has established us as Southeast Asia’s leading PropTech platform. As we continue to innovate and deliver value to our consumers, customers, and stakeholders across the region, EQT’s global expertise in building marketplaces and commitment to sustainable growth will further strengthen our vision to power communities to live, work, and thrive in tomorrow’s cities.”
Janice Leow, partner in the EQT Private Capital Asia advisory team and head of EQT Private Capital Southeast Asia, added, “PropertyGuru has firmly established itself as the leading property marketplace platform in Southeast Asia, and we are deeply impressed by the strong foundation it has built over the past 17 years as well as with its talented team. We believe our offer provides shareholders with compelling value and certainty, while strategically positioning PropertyGuru to fully harness its long-term growth potential. With EQT’s significant experience in the technology, online classifieds, and marketplace sectors, we aim to further strengthen PropertyGuru’s platform, driving enhanced innovation and deeper engagement with its consumers, customers, and stakeholders.”
The transaction is expected to close in Q4 2024 or Q1 2025, pending shareholder and regulatory approvals. It is not subject to a financing condition.
Once the transaction is complete, PropertyGuru will go private, delisting from the New York Stock Exchange (NYSE), with its headquarters remaining in Singapore.
