Zhaopin, a leading Chinese career platform that has filed for an U.S. IPO this May, has entered into a share purchase agreement with Jobs DB Inc. to acquire a 100% stake in Jobs DB China Investments Ltd., a subsidiary for the former, for US$15.72 million, according to the amended prospectus of the company. The cash consideration for the transaction has been paid to Jobs DB Inc., the company added.
According to Zhaopin, the acquisition was made mainly to buyback the stakes in CJOL, a privately held recruitment service in southern China that Zhaopin has sold its indirectly held stakes to Jobs DB in 2011. At the time of the disposition, Jobs DB Inc. was 55% owned by SEEK, a major shareholder of Zhaopin. After this transaction, Jobs DB Inc. was an entity controlled by SEEK.
According to the company, stake in CJOL was sold in 2011 to reposition resources in accordance with business strategies at the time and it is purchased now to improve Zhaopin’s competitive position in southern China as they are expanding into those regions. Through its 100% consolidated affiliate in China, Jobs DB China indirectly controls approximately 75.6% equity interest in CJOL.
Launched in 1998, the Hong Kong-headquartered recruiting service Jobs DB is now offering services in 12 countries and regions, including Australia, Hong Kong, Indonesia, India, Singapore, the U.S., etc.