Home › Business › Business News
Wednesday, 19 February 2014
KUALA LUMPUR: Australia's SeekAsia Ltd has launched a takeover offer for the entire online employment businesses of JobStreet Corporation Bhd in a RM1.73bil deal.
It told the Australian Stock Exchange on Wednesday the JobStreet has a strong financial track record with earnings before interest, tax, depreciation and amortisation (EBITDA) compounded annual growth rate of 18% (FY09 to FY13) and generates EBITDA margins of 48% (Q3 CY13).
"This acquisition is a continuation of SEEK's expansion in the strategic and high growth Asian region," it said. However, the acquisition was subject to regulatory approval in Singapore & Jobstreet shareholder approval.
SeekAsia said the combination of JobStreet and JobsDB "will unlock large growth opportunities".
It explained the attractive "blended" valuation was based on standalone earnings profile & combined growth opportunities; ability to access debt in SEEK Asia to reduce funding task and historic cost of SEEK's investment in JobStreet.
"SEEK's consideration is A$374mil made up of existing JobStreet equity of A$113mil and cash of A$261mil. SEEK Asia co-investors, Newscorp & Tiger Global are collectively contributing A$83mil.
Seek Asia said the settlement was expected in the fourth quarter of FY14.
CIMB and Goldman Sachs are acting as financial advisors, Baker & McKenzie and SBA Law are acting as legal advisors and PriceWaterhouseCoopers is acting as accounting and tax advisor to SeekAsia.
Sime’s plan to reduce RM19.7bil debt; may monetise assets, place out shares
GSK reboots in China
China steps up energy overhaul
US consumer sentiment up less than forecast
Daiman to gain from JB city centre project
Eight experiences you can’t miss when in Australia
Air Asia free seat promotion begins today
New generation focus of watch and jewellery showcase
Three ways companies can succeed in the age of disruption
Copyright © 1995-2015 Star Media Group Berhad (ROC 10894D)(Formerly known as Star Publications (Malaysia) Berhad)