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Zhaopin may accept takeover offer from consortium
Posted on Friday, 17 February 2017 09:27
Zhaopin has received a preliminary proposal from a group of investors, led by the Chinese career finding platform’s leading shareholder SEEK International Investments which could value the firm at around USD 434.97 million.
The New York-listed business is in advanced discussions with the consortium, which also includes Hillhouse Capital Management and FV Investment Holdings, an affiliate of FountainVest Partners, regarding a transaction.
According to a statement by the company regarding the potential deal, earlier this year Zhaopin appointed a special committee to review a non-binding proposal by the group, offering USD 18.00 per American Depositary Share in cash.
The bid represents a premium of 12.9 per cent to the firm’s close of USD 15.94 yesterday.
SEEK, Hillhouse and FV Investment are expected to finance the transaction through available cash, which may be in the form of a cash dividend from the company to shareholders.
Zhaopin did not unveil the timing of a potential announcement and did caution investors that the special committee and the board are yet to made any binding decisions and there can be no guarantee a deal will even take place.
The company offers a career finding platform in China, which connects users with relevant job opportunities and claims to be the most popular website in the country to find vocations.
As of 30th June 2016 Zhaopin had 120.00 million registered users, with about 36.90 million job postings placed by its some 509,813 unique customers, including countrywide corporations, small and medium-sized businesses and state-owned enterprises.
News of the offer comes just days before the group is set to announce its second quarter and first half earnings results.
Earlier this week Zhaopin announced it would reveal its financials on 20th February after the US market closes.
In the three months to 30th September 2016 the company posted revenue of CNY 426.16 million (USD 62.12 million), a 21.9 per cent increase on CNY 349.48 million in the corresponding timeframe of 2015.
Net profit for the period totalled CNY 81.12 million in Q1 2017 (Q1 2016: CNY 70.74 million).
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