Domain Holdings Australia (ASX:DHG) signed confidentiality and exclusivity agreements with CoStar, granting the US real estate firm due diligence access for four weeks, according to a Monday filing with the Australian bourse.

This follows CoStar's improved non-binding offer to acquire the company's shares for AU$4.43 each, compared with its earlier offer of AU$4.20 per share, via a scheme of arrangement, the filing said.

The company's board recommends that shareholders vote in favor of the proposed transaction in the absence of a superior offer and conditional upon an independent expert supporting CoStar's offer, the filing added.