China-based job board and HR resource services provider 51job Inc. (NSDQ: JOBS), announced yesterday that it has 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 merged company will be acquired by a consortium of investors. The consortium, which made the offer in May 2021, includes DCP Services Limited, Ocean Link Partners Limited, and Rick Yan, the CEO of the company. Japanese staffing firm Recruit Holdings Co., the company’s largest shareholder, is also participating in the transaction with the consortium. The initial buyout bid announcement was made on 17 September 2020.

Shareholders would receive USD 79.05 under the deal.

The merger, which is currently expected to close during the second half of 2021, is subject to customary closing conditions including the approval of the Merger Agreement by an affirmative vote of holders of shares representing at least two-thirds of the voting power of the shares present and voting in person or by proxy as a single class at a meeting of the company’s shareholders which will be convened to consider the approval of the merger agreement and the merger. 

The merger consideration represents a premium of 28.89% to the closing price of the company’s ADSs (American Depository Shares) on 3 May 2021, the last trading day prior to the company’s announcement of its receipt of the updated “going-private” proposal, and a premium of 25.38% to the volume-weighted average closing price of the company’s ADSs during the last 30 days prior to its receipt of the updated “going-private” proposal.

If completed, the merger will result in the company becoming a privately-held company and its ADSs will no longer be listed on the NASDAQ Global Select Market.

51job reported net revenue increased by 2.4% in the fourth quarter ended 31 December 2020 when compared to the fourth quarter of 2019.