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.
IBM to offer iPads and iPhones for business users
LinkedIn's hiring business seen key to growth
How to evaluate the scalability, competitiveness of a business
Willingness to learn an asset for business owner
Tencent teams up with IBM to offer business software over the cloud
Philips to buy medical device maker Volcano for US$1.2bil
Uber faces tough rivals, regulatory glare in China
Brent drops below US$60 as Opec, Russia maintain output
Japan export growth slows, adds to recession concerns
Ladies, time to stand up and fight for your man
Looking out for your ears
Insight - Greek premier prepared European ground before vote gamble
Teams owned by Tendulkar, Ganguly to meet in ISL final
Top crime drama 'Criminal Minds' to expand again
Copyright © 1995-2014 Star Publications (M) Bhd (Co No 10894-D)