SINGAPORE: PropertyGuru Group Limited, Southeast Asia’s leading property technology (PropTech) company, is set to be acquired by EQT Private Capital Asia in an approximately US$1.1 billion (S$1.45 billion) all-cash deal.
The transaction, which was recommended by a special committee of PropertyGuru’s board with assistance from financial and legal advisors, has been approved unanimously by the company’s board of directors.
Under the merger agreement terms, each ordinary share of PropertyGuru will be converted into a cash payment of US$6.70 per share without interest.
This offer represents a 52% premium to the closing share price on May 21, 2024, the last trading day before speculation about the transaction began.
It also reflects a 75% and 86% premium to the company’s 30-day and 90-day volume-weighted average share prices, respectively, for the period ending May 21, 2024.
Key shareholders, including TPG Asia VI SF Pte. Ltd. and KKR’s Epsilon Asia Holdings II Pte. Ltd., who together own 56% of PropertyGuru’s ordinary shares, have agreed to support the merger by signing voting and support agreements.
PropertyGuru’s CEO and Managing Director, Hari V. Krishnan, expressed confidence in the partnership with EQT, noting the company’s growth under the support of TPG and KKR.
“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,” he said.
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 by either Q4 2024 or Q1 2025, subject to standard closing conditions, including shareholder approval and regulatory clearances.
The deal is not dependent on financing, which should facilitate a smooth completion process. Once finalised, PropertyGuru will operate as a private company, with its headquarters remaining in Singapore. /TISG
Read also: PropertyGuru reports S$1 million net income for Q4 “despite less than favourable market conditions”
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