Hot Stock JobStreet rises 7% on higher offer of RM1.89b

by **Cals** Wed 20 Aug 2014, 22:21

Hot Stock JobStreet rises 7% on higher offer of RM1.89b

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Wednesday, 20 August 2014 11:49

KUALA LUMPUR (Aug 20): JobStreet Corp Bhd rose as much as 7% after the offer to sell its online job portal business to Seek Asia Investments Pte Ltd was raised to RM1.89 billion from RM1.73 billion previously.

Yesterday, JobStreet in a filing with Bursa Malaysia said it amended the disposal consideration on a "willing buyer-willing seller" basis after taking into consideration its improved operational performance since the earlier consideration was agreed upon.

At 11.24 am today, JobStreet gained 15 sen or 6.3% to RM2.54. The fifth top gainer saw trades of some 2.9 million shares. It had earlier risen to a high of RM2.56.

Remisiers familiar with the stock said JobStreet’s climb today was attributed to the higher offer.

SJ Securities’ senior remisier Goh Kay Chong told theedgemalaysia.com: “JobStreet’s share price was driven up by the new offer.”

InterPacific Securities’ remisier Sam Ng concurred saying the new acquisition offer would translate to about RM2.67 per share of the online job portal business.

In February this year, JobStreet announced it entered into a conditional share sale agreement with Seek Asia for RM1.73 billion in cash.

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.

Reuters had reported, 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.