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Singapore – Jobstreet to fully acquire Vietnamese and Indonesian subsidiaries

14 January 2014

Jobstreet.com Pte Ltd, the wholly-owned Singapore subsidiary of Malaysian online job board Jobstreet Corp Bhd (JOBST: KLS), will acquire the remaining 19% equity in Jobstreet Vietnam Holdings Pte Ltd for MYR 1.2 million (USD 368,140).

Jobstreet Singapore will buy 190,000 ordinary shares in Jobstreet Vietnam from vendor Ngueyn Hoang Bao, via the issuance of 522,220 ordinary shares in Jobstreet Corp at an issuance price of MYR 2.29 (USD 0.70) per share. At present Jobstreet Singapore holds an 81% stake in Jobstreet Vietnam.

The company said based on the positive developments of the labour force and employment growth in Vietnam, Jobstreet Corp is optimistic about the prospects of online job and advertisement services business in Vietnam and it is an opportune time for Jobstreet Corp to strengthen its presence there.

According to Jobstreet Corp’s filing with the Malaysia stock exchange last week: ”The proposed acquisition is expected to strengthen Jobstreet’s presence in Vietnam’s online recruitment market. Jobstreet expects to strategise and coordinate all its future development activities for its Vietnam operations in a more efficient manner as it attains full control of the management of Jobstreet Vietnam Holdings.”

The company has also entered into a conditional share sale agreement to acquire the remaining 40% stake in Jobstreet Indonesia from PT Sinar Mas Multiartha Tbk for MYR 13.74 million (USD 4.2 million). The purchase price shall be payable by Jobstreet Singapore to PT Sinar Mas entirely via the allotment and issuance of six million new Jobstreet Corp shares.

In its filing with the Malaysian stock exchange, the company said: “Barring any unforeseen circumstances and subject to the fulfilment of all conditions precedent as set out in the share sales agreement, the proposed acquisition is expected to be completed by the first quarter of 2014. In view of the positive developments of the labour force and employment growth in Indonesia, the board is optimistic of the prospects of online job portal business in Indonesia and is of the opinion that it is now an opportune time for Jobstreet Corp to strengthen its presence in Indonesia.”    

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