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Australia-based online recruitment firm Seek Limited (SEK:ASX) has invested USD 20 million for a 25% stake in One Africa Media (OAM), which owns and invests in a portfolio of leading online marketplaces, including for jobs, cars, real estate and travel.
Jason Lenga, managing director of Seek International, said that Africa presents a strategic opportunity to benefit from long-term growth opportunities for online classifieds businesses.
Following the investment, Seek will appoint one Director to the Board, hold typical minority shareholder protections and will account for OAM as an Associate. Post-investment Seek’s net debt balance is AUD 260 million (USD 239.9 million).
OAM’s operations are in countries with rapidly growing internet and mobile penetration rates. Its portfolio includes job sites Jobberman in Nigeria and Brighter Monday in Kenya. Although the company has a track record of revenue growth it is not currently profitable. OAM will utilise the majority of SEEK’s investment to fund further growth across Africa. Post-transaction, OAM will have a cash balance of around USD 22 million.
Seek provides online employment services in Australia and New Zealand, claiming to hold around 75% of all jobs on Australia’s major job sites. The firm also has a presence in Asia and Latin America. Seek revenue in the six months to December jumped an annual +32%, totalling AUD 275.3 million (USD 284.5 million).