Online job ads provider Seek Ltd
(ASX:SEK) says it has increased its stake in JobStreet Corporation Berhad, a Malaysian employment website provider.
The company says its interest has risen from 10.1% to 21.3% after paying a consideration of $23.5 million.
It says JobStreet has strong market positions in Malaysia, Singapore and the Phillipines, as well as a significant shareholding in Taiwanese online employment provider 104 Corporation.
Seek has received the cooperation of JobStreet’s founders and management team, who are also substantial shareholders.
As part of the transaction, these shareholders have sold Seek a 5.6% stake in the company.
Seek CEO Andrew Bassat says the company has been impressed by the strong results JobStreet has been delivering since Seek acquired its initial stake, especially during the global financial crisis.
Mr Bassat says Seek will provide strategic support to JobStreet and share expertise across the operations.
The increased stake will help to position Seek strongly in the Asian market.
In the 12 months to June 30, 2009, Seek posted a profit of $55.3 million.
