19-8-2024 (SINGAPORE) PropertyGuru, the Singapore-based property technology firm, is poised to exit the New York Stock Exchange (NYSE) in a significant move that will transform it into a private entity. The company announced on 16 August that it has entered into a definitive agreement to be acquired by EQT Private Capital Asia in an all-cash transaction valued at approximately US$1.1billion (S$1.5billion).
This landmark deal marks a new chapter for PropertyGuru, which has been a publicly traded company on the NYSE since March 2022. The transition to private ownership is expected to provide the company with greater flexibility to pursue its long-term strategic objectives without the pressures of quarterly earnings reports and public market scrutiny.
Under the terms of the agreement, shareholders will receive US$6.70 in cash for each ordinary share they hold, representing a substantial premium of 52% over the company’s closing share price on 21 May. This date is significant as it was the last trading day unaffected by media speculation about a potential buyout. The offer also represents a 75% and 86% premium to PropertyGuru’s 30-day and 90-day volume-weighted average share prices, respectively, ending on 21 May.
The board of directors at PropertyGuru has unanimously approved the transaction and is recommending that shareholders vote in favour of the deal. However, the acquisition is still subject to customary closing conditions, including regulatory approvals and shareholder consent. As such, the company anticipates the deal to be finalised between the fourth quarter of 2024 and the first quarter of 2025.
PropertyGuru has assured stakeholders that its headquarters will remain in Singapore following the completion of the transaction, maintaining its strong ties to the city-state where it was founded in 2007.
Since its inception as a digital property marketplace, PropertyGuru has experienced significant growth, expanding its operations into Indonesia and Malaysia, and diversifying into the home loans business. The company now boasts an impressive portfolio of more than 2.8 million real estate listings and serves over 34 million property seekers monthly across its platforms.
The decision to go private comes at a time of both opportunity and challenge for PropertyGuru. In February 2024, the company underwent a restructuring that resulted in the layoff of 79 employees, signalling a need to optimise operations in a competitive market.
Industry analysts suggest that the move to private ownership could allow PropertyGuru to invest more heavily in technology and market expansion without the short-term financial pressures often associated with public markets. It may also provide the company with the necessary runway to weather any potential economic headwinds in the property sector.
