PropertyGuru Group Limited ( PGRU ) shares are trading higher after the company announced a merger agreement with affiliates of BPEA Private Equity Fund VIII Limited, part of EQT AB, in an all-cash transaction valued at about $1.1 billion.

Under the terms, each PropertyGuru ( PGRU ) ordinary share will be canceled and converted into a cash payment of $6.70 per share, excluding certain shares, with no interest.

The merger values PropertyGuru ( PGRU ) at a 52% premium over its May 21, 2024 closing price, the last unaffected trading day before media speculation regarding a potential transaction.

Major shareholders TPG and KKR & Co. ( KKR ) Inc. , which hold a combined 56% ownership of outstanding ordinary shares, have entered into voting and support agreements supporting the merger.

Related: PropertyGuru Takeover On The Horizon? KKR And TPG Reportedly Explore Buyout

PropertyGuru’s Board of Directors, advised by a special committee, has unanimously approved the merger agreement and is recommending it to shareholders.

The transaction is set to close in the fourth quarter of 2024 or the first quarter of 2025, pending shareholder and regulatory approvals.

Once completed, PropertyGuru ( PGRU ) will go private, its shares will be delisted from the NYSE, and the company’s headquarters will remain in Singapore.

Hari V. Krishnan, CEO & MD, PropertyGuru Group ( PGRU ), 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.”

In May, PropertyGuru ( PGRU ) reported first-quarter revenue growth of 12% Y/Y to S$36.5 million, missing the consensus of S$37.3 million and EPS loss of S$0.04 was higher than loss of S$0.06 in the quarter. 

Price Action: PGRU shares are up 5.59% at $6.61 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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