Chinese job search provider 51job to go private in USD5.7 billion deal - PingWe...

Chinese job search provider 51job to go private in USD5.7 billion deal

Chinese job search provider 51job to go private in USD5.7 billion deal

22 hours ago

Chinese human resources and job search provider 51job.com has reached an agreement to be taken private by a consortium of Chinese investor in a deal that valued it at about USD5.7 billion.

Context: The consortium includes DCP Capital Partners, Ocean Link Partners and 51job's co-founder and chief, Rick Yan.

The firm's largest shareholder, Recruit Holdings Co, is also participating in the transaction. The transaction is expected to close in the second half of 2021,the company said.

51 job.com negotiated the deal with DCP Capital for almost ten months since September, 2020. Then, in May, 51 job.com said it received an updated takeover proposal from the consortium.

Under terms of the deal, 51job shareholders will receive USD79.05 in cash for each American depositary share they own. That price is almost 6% above Friday's closing price of USD74.65.

Detail: Founded in 1998, 51job provides human resources services, it also provide a number of other value-added HR services, including business process outsourcing, training, professional assessment and other career-related assistance in China.

The share price of 51job.com have been underperformed for a while, its share price decline by nearly 40% from its all-time closing high of USD113.06 in June, 2018.

Since the beginning of last year, 20 Chinese companies finished privatisation deals worth USD20.5 billion, the largest number of such transactions since 2015, according to data provider Refinitiv.

Online classified advertisement website 58.com, Sina Corporation, the operator of social media platform Weibo are among the companies that have decided to go private.

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