PropertyGuru to delist with EQT’s $1.1b acquisition bid

Photo credit: PropertyGuru

PropertyGuru Group announced on Friday that it will be acquired by investment firm EQT Private Capital Asia for US$1.1 billion.

Under the merger terms, ordinary shares of PropertyGuru will be canceled and converted automatically into the right to receive US$6.70 per share, without interest.

The merger price represents a 52% premium to the company’s closing share price on May 21, the last unaffected trading day before media speculation regarding a potential transaction, the company said.

Private equity groups KKR and TPG, which hold a combined 56% of PropertyGuru’s shares, have undertaken to sell their stake in support of the merger. In May, it was reported that KKR and TPG – major shareholders of PropertyGuru – were exploring a buyout of the company.

The proposed merger price is also a 75% and 86% premium to PropertyGuru’s 30-day and 90-day volume-weighted average share price, respectively, for the period ending May 21, 2024.

The transaction is expected to be completed in the last quarter of 2024 or the first quarter of 2025, subject to customary closing conditions, including approval by PropertyGuru’s shareholders and receipt of regulatory approvals.

Upon completion, PropertyGuru’s shares will no longer trade on the New York Stock Exchange; the group will become a private company. PropertyGuru said its headquarters will remain in Singapore.

In response to queries from The Business Times, Hari Krishnan, CEO and managing director of PropertyGuru Group, said: “Going private allows PropertyGuru to focus on long-term strategies, innovate more freely, and execute growth plans without the pressures of public-market expectations.”

“We believe our offer provides shareholders with compelling value and certainty, while strategically positioning PropertyGuru to fully harness its long-term growth potential,” added Janice Leow, head of EQT Private Capital Southeast Asia.

When asked whether there would be leadership changes in the pipeline, PropertyGuru told Business Times that the leadership team is committed to driving the company’s vision, with the support of EQT to potentially enhance its strategic capabilities.

PropertyGuru added that it remains committed to the talent development of its staff and is focused on ensuring that the ownership transition is completed smoothly. The company currently has over 1,500 employees across the region.

In its first quarter ended March, PropertyGuru posted a net loss of S$6.3 million (US$4.8 million), narrowing from the US$7.7 million net loss in the same period the year before.

Revenue for the quarter stood at US$27.7 million – 11.9% higher than the US$24.7 million the year before – on the back of strong growth in the Singapore marketplace segment.