EQT Private Capital Asia, part of EQT, has agreed to acquire PropertyGuru, Southeast Asia’s leading property technology company, in an all-cash transaction, which values the company at about US$1.1bn (€1bn). KKR is the main shareholder and the company will be delisted on the New York Stock Exchange.
PropertyGuru’s board has unanimously approved and resolved to recommend approval of the merger by PropertyGuru’s shareholders. Major shareholders are TPG and Epsilon Asia Holdings II, an entity managed by global investment fund KKR, which hold a combined 56% ownership of the ordinary shares outstanding. The shareholders support the merger proposal and the delisting of the company.
Under the terms of the merger agreement, each ordinary share of the PropertyGuru will receive an amount in cash equal to US$6.70 per share, without interest.
The merger consideration represents a 52% premium to PropertyGuru’s closing share price on May 21, 2024, the last unaffected trading day prior to media speculation regarding a potential transaction, 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 21 May 2024.
Hari V Krishnan, CEO and managing director at PropertyGuru Group, said: “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.”
Janice Leow, partner in the EQT Private Capital Asia advisory team and head of EQT Private Capital Southeast Asia, said: “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.”
The transaction is expected to close between the fourth quarter of 2024 and the first quarter of 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. PropertyGuru’s headquarters will remain in Singapore.
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