Nine Entertainment Co. Holdings (ASX:NEC) will be in a strong net cash position following the completion of the Domain Holdings Australia (ASX:DHG) deed with CoStar Group and a dividend payment, according to a Thursday report by the Jarden research.

As Domain's majority shareholder, Nine had earlier said it intends to vote in favor of the proposed scheme, where Nasdaq-listed real estate firm CoStar will acquire all the remaining shares in Domain for AU$4.43 per share in cash.

Post the deal, Nine said it expects to pay a fully franked special dividend of AU$0.47 to AU$0.49 per share to its shareholders.

On a pro forma basis, Jarden expects Nine Entertainment's net cash to range between AU$120 million and AU$170 million after the merger.

In addition, Jarden expects the company to pay a special dividend of AU$0.48 per share, which shows that the market is currently valuing the remainder of NEC, including pro forma net cash, at AU$1.05 per share.

The firm believes Nine also has the potential capacity for a merger & acquisition, or capital management.

Jarden has an overweight rating on both Nine Entertainment and Domain Holdings, with price targets of AU$1.80 and AU$4.43, respectively.