PropertyGuru to be acquired for US$1.1 billion

Property technology company PropertyGuru Group has entered into an agreement to be acquired by EQT Private Capital Asia. Following which, it will become a private company. 

The acquisition by EQT Private Capital Asia will be made in an all-cash transaction that values PropertyGuru at an equity value of approximately US$1.1 billion. 

Under the terms of the merger, each ordinary share of the company issued and outstanding immediately before the acquisition will be cancelled and converted automatically into the right to receive a cash amount equal to US$6.70 per share, without interest. 

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This amount represents a 52% premium to PropertyGuru's closing share price on 21 May 2024, the last unaffected trading day prior to media speculation regarding a potential transaction, said PropertyGuru in a statement.

PropertyGuru added that the merger represents a 75% and 86% premium to the company's 30-day and 90-day volume-weighted average share price respectively for the period ending 21 May. 

"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," said Hari V. Krishnan, CEO and MD, PropertyGuru Group. 

"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," added Krishnan. 

The transaction, according to the statement, is expected to close in Q4 2024 or Q1 2025, subject to customary closing conditions, including approval by PropertyGuru’s shareholders and receipt of regulatory approvals. The transaction is not subject to a financing condition.

Upon completion of the transaction, PropertyGuru’s shares will no longer trade on the New York Stock Exchange, and PropertyGuru will become a private company, said the statement.

PropertyGuru’s headquarters will remain in Singapore. 

"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," said Janice Leow, partner in the EQT Private Capital Asia advisory team and head of EQT Private Capital Southeast Asia. 

"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," added Leow. 

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