PropertyGuru enters into definitive merger agreement to be acquired by EQT Private Capital Asia for US$ 1.1 bil

  • Upon conclusion, PropertyGuru will get personal and delist from the NYSE
  • Transaction expected to near by Q4 2024 or Q1 2025, pending circumstances

PropertyGuru enters into definitive merger agreement to be acquired by EQT Private Capital Asia for US$ 1.1 bil

PropertyGuru Group Limited, one of Southeast Asia’s top property technology firms, has signed an agreement to combine with affiliates of BPEA Private Equity Fund VIII Limited ( EQT Private Capital Asia ), a division of EQT AB, a global investment company. The all-cash transaction values PropertyGuru at approximately US$ 1.1 billion ( RM3.8 billion ). PropertyGuru’s board of directors, following a suggestion from a particular commission, has overwhelmingly approved and recommended that owners approve the consolidation. With the assistance of financial and legal officials, the Special Committee negotiated the consolidation term.

Each ordinary share of PropertyGuru issued and outstanding before the effective date ( excluding some shares ) will automatically convert into the right to receive US$ 6.70 ( RM29 ) per share in cash, unaffected by any interest, pursuant to the merger agreement. This represents a 52 % premium to PropertyGuru’s closing share price on 21 May 2024, and a 75 % and 86 % premium to the company’s 30-day and 90-day volume-weighted average share price, respectively, for the period ending on that date.

Major owners, including TPG Asia VI SF Pte. Ltd., TPG Asia VI SPV GP LLC, and Epsilon Asia Holdings II Pte. The merger’s owners, who collectively hold 56 % of the excellent common stock, have entered into election and help agreements with KKR.

PropertyGuru enters into definitive merger agreement to be acquired by EQT Private Capital Asia for US$ 1.1 bilHari V. Krishnan ( pic ), &nbsp, CEO &amp, MD, PropertyGuru Group, said,” We are pleased to embark on this new chapter with EQT. This relationship comes after years of transformative growth, which TPG and KKR have supported, making us the world’s leading PropTech system in Southeast Asia. As we continue to innovate and provide value to our consumers, customers, and stakeholders across the region, EQT’s international experience in building marketplaces and commitment to sustainable development will further improve our perception to energy communities to live, function, and thrive in today’s cities”.

In addition, Janice Leow, a partner in the EQT Private Capital Asia advisory group and nose of EQT Private Capital Southeast Asia, stated that” PropertyGuru has firmly established itself as the leading property market system in Southeast Asia, and we are deeply impressed by the strong base it has built over the past 17 years as well as with its brilliant team.”

” We think our offer strategically positions PropertyGuru to fully exploit its long-term growth potential while offering shareholders compelling value and certainty.” 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”, she added.

The transaction is expected to close in Q4 2024 or Q1 2025, subject to customary conditions, including approval by PropertyGuru’s shareholders and receipt of regulatory approvals. There is no financing condition for the transaction. Upon completion, PropertyGuru’s shares will cease trading on the New York Stock Exchange, and the company will become private, with its headquarters remaining in Singapore.