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.
Two out of four independent directors in REDtone tell shareholders to reject takeover offer
Johor Biotech eyes RM500mil investments
TNB second-quarter earnings jump 25%
Next stop – Sensational Singapore
How Malaysians abroad are bridging a skills gap
10 ways to discover Cairns and the Great Barrier Reef
Former pro shares useful pointers at Junior NBA programme
Surreal art in Dubai
Unfriended director: ‘I hope after you see the movie, you think a little bit more about what’s on your home computer.’
Copyright © 1995-2015 Star Publications (M) Bhd (Co No 10894-D)