SEEK Moves to 100% of SEEK Asia
- Investing cA$157m to increase ownership in SEEK Asia from 86.25% to 100%
- Transaction is cash earnings per share accretive in FY18 and beyond
- Transaction price implies a FY17 EV/EBITDA multiple of 16x (see Note below)
Commenting on the transaction, Andrew Bassat, CEO and Co-Founder of SEEK said,
"We are very pleased to move to 100% ownership in SEEK Asia. SEEK's recent changes in organisational structure will lead to SEEK Asia being more integrated in the AP&A structure. Against this backdrop, this transaction is a logical outcome for both News Corporation and SEEK and I would like to thank News Corporation for being a valuable partner."
"We are very excited about the growth potential for SEEK Asia which operates in seven high growth countries across the region. This business has managed a complex integration and we are already seeing good operational and financial results from our recent reinvestment. We hope to see this improvement accelerate over time as we launch new products and services at a faster rate to better meet the needs of candidates and hirers."
- Completion of transaction is expected by 16 March 2018
- This transaction does not change SEEK's FY18 guidance provided with its H1 18 results
- Transaction to be funded by existing debt facilities in SEEK Ltd
Note: Consideration of A$156.6m / 13.75% = A$1,139m (Equity value) + A$77m net debt (31-Dec-17) = A$1,216m (EV) / FY17 EBITDA of A$76m = 16x EV/EBITDA multiple
About SEEK Limited
The purpose of SEEK Limited (ASX:SEK) (OTCMKTS:SKLTY) is to help people live more fulfilling and productive working lives and help organisations succeed. SEEK makes a positive contribution to people's lives on a global scale.
SEEK is the global leader in the creation and operation of online employment markets. Globally SEEK has relationships with over 700,000 hirers and 150 million candidates.
SEEK makes a positive contribution to people's lives through connecting more people to relevant job opportunities using its marketplace scale and technology to build radically more efficient and effective employment marketplaces.
SEEK is listed on the Australian Securities Exchange, and has been listed in the Top 20 Most Innovative Companies Globally by Forbes, and Number One in Australia.
SEEK has been recognised by AON Hewitt as an Employer of Choice ten years straight and is passionate about it's company's culture. SEEK is a leader in workplace diversity and inclusion.
For 20 years SEEK has been an integral part of Australians' job-search process, and as the country's leading employment marketplace is uniquely positioned to empower Australians with career, education and volunteer opportunities to create productive and fulfilling working lives.