The American real estate giant confirmed Mr Pellegrino’s return in details released ahead of a Domain shareholder vote, following a report by The Australian Financial Review.
Mr Pellegrino’s potential return, which could see him become President, comes after he previously led Domain from August 2018 until his departure last year.
His original tenure began nine months after Domain’s then-owner, Fairfax Media, floated the company on the ASX in 2017.
If the acquisition goes ahead, it will see Domain delisted from the ASX, with CoStar planning substantial investments in the platform’s content, technology and marketing capabilities.
The American company stated it intends to position Domain as a stronger alternative to market leader REA Group.
CoStar also revealed it may undertake a major rebrand of Domain, having recently acquired the homes.com.au brand.
This acquisition provides the company with options “to go to market with flanking brands to Domain or to make a big statement with a major rebrand of Domain,” according to details provided to shareholders.
Nine Entertainment, which controls 60.1 per cent of Domain and publishes The Australian Financial Review, The Sydney Morning Herald and The Age, will receive a $1.4 billion windfall from the sale.
Nine plans to return approximately half of these proceeds to shareholders as a fully franked special dividend, amounting to about $777 million.
The remaining funds will strengthen Nine’s balance sheet and position it for future growth opportunities, both organic and through acquisitions.
Domain shareholders will vote on the acquisition in August.
