Seek takes JobsDB and increases its Asian/Chinese reach
INTERNET job hunting giant Seek has expanded further into southeast Asia, taking a $206 million stake in a Hong Kong-based online recruitment website.
Seek yesterday announced it had purchased the majority holding in employment website Jobs DB Inc, giving it a 60 per cent slice of the Chinese company through the creation of a new company, Seek Asia.
Seek Asia is a partnership between Seek, James Packer’s Consolidated Media Holdings, Macquarie Capital and Tiger Global.
Seek’s co-chief executive Andrew Bassat said the move into Asia “built upon the company’s existing international footprint” and exposed the company to “attractive regions”.
“We believe this transaction represents a compelling opportunity for Seek to play an increasingly meaningful role and to expand its exposure in the region.”
Seek’s latest acquisition adds to several other major international investments including Chinese online jobs board Zhaopin; Southeast Asian recruitment website JobStreet and employment sites in Brazil and Mexico.
Evans and Partners analyst Paul Ryan said the Jobs DB acquisition would be part of Seek’s long term strategy to become a leader in the Pan-Asian online employment market.
“When you add Jobs DB in, the combined businesses have a larger, more diversified and better presence in southern China,” Mr Ryan said. “It’s a bigger, more diversified and more profitable business.”
Mr Ryan said he expected Macquarie and Tiger Global to exit Seek Asia through an IPO at a later date.
However, another analyst said Seek may have been spreading itself too thin with its latest Asian investment following co-founder and chief executive Paul Bassat’s plans to leave the company in mid-2011.
“This is another company that they have to integrate and manage and try to grow,” said the analyst, who declined to be named.
Seek Australia has a 69 per cent holding in Seek Asia and the other 31 per cent, $64 million, will be divided between the three other co-investors.
Mr Packer’s $25 million Seek Asia investment was his first since selling out of Seek Australia last year for $440 million.
The media and casino mogul has also invested in Seek’s Brazilian acquisition, Brasil Online Holding, and made an unsuccessful attempt to get Paul Bassat on the Ten Network board.
Seek shares rose 1c to $6.57.