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
SEEK Limited (ASX:SEK) (OTCMKTS:SKLTY) is a diverse group of companies, comprised of a strong portfolio of online employment, educational, commercial and volunteer businesses. SEEK operates across 18 countries with exposure to over 4 billion people and 28 per cent of GDP. SEEK makes a positive contribution to people's lives on a global scale. SEEK is listed on the Australian Securities Exchange, where it is a top 50 company with a market capitalisation close to A$6billion and has been listed in the Top 20 Most Innovative Companies Globally by Forbes, and Number One in Australia.