China-based job board and HR resource services provider 51job Inc. announced that it has received a proposal to amend its going-private transaction.

On 21 June 2021, the group announced that it entered into a definitive agreement and plan of merger with Garnet Faith Limited to be taken private in a deal valued at approximately USD 5.7 billion.

The job board announced yesterday that its Board of Directors and the special committee of the Board have received a proposal letter from Garnet Faith Limited.

In the Proposal Letter, the merger sub proposed to reduce the merger consideration from USD 79.05 in cash per common share to USD 57.25 in cash per common share and reduce the combined ownership of DCP Capital Partners II, L.P. and Ocean Link Partners Limited in the company upon consummation of the proposed merger to 9.99%.

51job said the group cited the deterioration of macroeconomic and general market conditions in China, along with a tightening of regulatory policies that is expected to have a meaningful effect on recruitment demand, for the reduction in the planned purchase price, as well as challenges for the economy and businesses in the PRC from the continuing impact of Covid-19.

Garnet Faith stated the changes in its proposal came ‘in light of the widely-publicised recent legislative and regulatory developments in the PRC (People’s Republic of China) surrounding national security, cybersecurity, and data security, and in order to increase the certainty of closing the transaction on a timely basis in compliance with all applicable PRC laws.”

The revised deal would value the company at approximately USD 3.86 billion.

“The Special Committee will evaluate the Proposed Revised Transaction in light of the latest development with the assistance of its financial and legal advisors,” the job board added.