JobStreet to pay almost all of $661 million from sale of online business as dividend

The Star/Asia News Network

PETALING JAYA, Malaysia - JobStreet Corp Bhd, which is selling its online job portal business to Australia's SEEK Ltd for RM1.73bil (S$661 million) cash, says it will return just about all the proceeds to shareholders as special cash dividend.

This works out to approximately RM2.72 per share.

At last look, Jobstreet shares were traded at RM2.68.

The stock was suspended to make way for this announcement yesterday and will resume trading today.

In a statement to Bursa Malaysia, JobStreet said the proposed disposal to SEEK Asia Investments Pte Ltd was effectively for the sale of all of the company's online job portal businesses in Malaysia, Singapore, the Philippines, Indonesia and Vietnam.

SEEK plans to combine JobStreet and JobsDB, its majority-owned Asian online employment business, and said that it "will unlock large growth opportunities."

"This acquisition is a continuation of SEEK's expansion in the strategic and high growth Asian region," it said in a statement.

The deal to acquire the remaining 78 per cent of shares SEEK does not own in JobStreet is subject to regulatory and shareholder approval.

SEEK first became a substantial shareholder in JobStreet in September 2008 after it bought 31 million shares or close to 10 per cent in the company. It now owns 22.18 per cent of the company.

CIMB and Goldman Sachs are acting as SEEK's financial advisors, Baker & McKenzie and SBA Law are the legal advisors and PriceWaterhouse-Coopers is the accounting and tax advisor to SEEK.

HwangDBS Investment Bank Bhd is the principal adviser for this deal here.

JobStreet covers the employment markets in Malaysia, Singapore, the Philippines, Indonesia, India, Japan, Thailand and Vietnam, and currently services over 80,000 corporate customers and has over 11 million jobseekers in its database.

Meanwhile, JobStreet reported a lower net profit of RM13.16mil or 2.08 sen per share for its fourth quarter ended Dec 31 compared with a net profit of RM14.83mil or 2.32 sen per share for the same period a year earlier.

It said recruitment activities tend to slow down towards year-end and during major holidays. Revenue stood at RM41.5mil against RM36.4mil.

It also declared a dividend of 1.75 sen per share, bringing total dividend for the entire year to seven sen per share.

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