In a recent development, PropertyGuru Group, a leading proptech company offering online real estate services and the owner of Batdongsan.com.vn, has announced its acquisition by EQT Private Capital Asia, a Hong Kong-based investment firm. The deal values PropertyGuru at a significant $1.1 billion.
As per the merger agreement, PropertyGuru’s common stock will be delisted and automatically converted into the right to receive $6.70 per share in cash for the shareholders, without interest.
The group stated that this price represents a premium of approximately 52% over the closing price of the company’s stock on May 21, which was the last trading day before media speculation regarding a potential transaction surfaced.
Back in May, there were reports that KKR and TPG, two major shareholders of PropertyGuru, were considering acquiring the company. KKR owned approximately 26.5% of PropertyGuru, while TPG held around 29.6%.
The proposed merger price also represents a premium of approximately 75% and 86% over the 30-day and 90-day volume-weighted average price per share of PropertyGuru common stock, respectively, as of May 21.
The transaction is expected to close by the end of this year or early next year, subject to conditions such as the approval of PropertyGuru’s shareholders and regulatory clearances.
Following the completion of the transaction, PropertyGuru’s shares will no longer be traded on the New York Stock Exchange. The group will become a private company, and it has stated that its headquarters will remain in Singapore.
Hari Krishnan, CEO of PropertyGuru Group, commented to The Business Times: “Being private allows PropertyGuru to focus on long-term strategies, innovate more freely, and execute our growth plans without the pressures that come with expectations of short-term investors.”
PropertyGuru has affirmed that its current leadership is committed to the company’s existing strategy and vision, with the support of EQT to further enhance the company’s strategic capabilities. Additionally, PropertyGuru remains dedicated to talent development within its team of over 1,500 employees across the region and ensuring a smooth ownership transition.
In the first quarter ended March, PropertyGuru reported a net loss of S$6.3 million (US$4.8 million), an improvement from a net loss of US$7.7 million in the same period last year. Revenue for the first quarter grew 11.9% year-over-year to US$27.7 million, driven by strong growth in the Singapore market segment.
PropertyGuru was founded in 2007 by Steve Mulhuish and Jani Rautiainen. It started as an online property listings portal and has since expanded into a mortgage marketplace, home services platform, and enterprise solutions provider.
In 2022, the company made its debut on the New York Stock Exchange at a share price of US$8.61. The group was listed through a SPAC merger with Bridgetown 2, backed by billionaires Peter Thiel and Richard Li. At that time, PropertyGuru had a market capitalization of US$1.6 billion.
