KUALA LUMPUR (Feb 19): JobStreet Corporation Bhd announced that it has entered into a conditional share sale agreement with SEEK Asia Investments Pte Ltd, for the disposal of its online job portal business, for an aggregate RM1.73 billion million in cash.
“Following the disposal, the board of directors of JobStreet intends to reward shareholders with a special cash dividend, from substantially the entire proceeds received,” said the firm, in a filing with Bursa Malaysia.
It added, the declaration and payment of the special cash dividend would be “a single-tier interim special dividend to the entitled shareholders”.
Giving rationale for the disposal, JobStreet said, due to the emergence of new competitors and the growing acceptance of social media, its board was constantly evaluating the long term strategy of the business.
“The proposed disposals represent an attractive offer and will allow JobStreet to immediately unlock substantial value in the online job portal business, which is consistent with the company’s intent of maximising returns to shareholders.
“The proposed distribution provides immediate significant liquidity to shareholders, and is undertaken to reward shareholders.”
According to Reuters, Seek, which has been expanding to countries ranging from Singapore to China, plans to merge Jobstreet with fellow Southeast Asian recruitment site JobsDB, in which Seek bought the remaining interest, less than a year ago.
"This transaction is a continuation of Seek's focus in Asia," Seek co-founder and Chief Executive, Andrew Bassat, said in a statement to the Australian stock exchange.
"In the near term, we expect revenue residing in Asia to comprise over 50 percent of Seek's overall revenue, which further cements Seek as a global leader in online employment."
Trading of Jobstreet shares was suspended on Wednesday, pending an announcement. The stock last closed at 2.68 ringgit.
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