Trade Me, New Zealand's largest online marketplace, is set to be bought by a British private equity firm for $NZ2.56 billion ($A2.44 billion).
London-based Apax Partners has offered $NZ6.45 a share for the former Fairfax business, which is dual-listed on the ASX and NZX, raising its initial bid following a rival offer from California-based Hellman & Friedman.
Trade Me shares had been trading at about $NZ5.10 before Apax offered $NZ6.40 a share last month.
Shares on the NZX were trading at $NZ6.38 mid-day on Wednesday, up 4.25 per cent.
They were at $A6.08 on the ASX, up 4.47 per cent.
"We're confident Trade Me would have a successful standalone future, but we believe the certainty of the cash offer and material premium would be an attractive outcome and it merits being put to shareholders with our recommendation, in the absence of a superior proposal," Trade Me chairman David Kirk said on Wednesday.
Apax has the right to match any better offer, and would be entitled to a $NZ19.2 million "break fee" from Trade Me if it walks away from the deal.
Otherwise, Apax's offer will be put to a shareholder vote in April.
Trade Me is New Zealand's leading marketplace for real estate, jobs and cars.
It was founded by Kiwi entrepreneur Sam Morgan in 1999, who sold it to Fairfax Media in 2006 for NZ$700 million.
Fairfax, which is now part of Nine Entertainment, floated the business in 2011 and sold its 51 per cent stake the following year, earning an estimated $NZ530 million ($A505m) on its original purchase.
The delisting will be a blow to the NZX, which lost Xero to the ASX earlier this year.
Trade Me chief executive Jon Macdonald, who announced in June he'd be stepping down in December, will continue in his duties on an interim basis to ensure a smooth transition, the company said on Monday.
