Australia's SeekAsia buying JobStreet's business for RM1.73b (Update)

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.