Jobstreet Corporation Bhd
Jobstreet has completed the disposal of its online job portal business to SEEK Asia Investments Pte Ltd for RM1.89 billion — and distributed almost all of the proceeds to shareholders via special dividend of RM2.65 per share.
Following the sale, Jobstreet is now a “cash company”. Under PN17 of the listing requirements, it has to formulate a plan to regularise its financial condition within 12 months.
There are several possible outcomes. Jobstreet may start new businesses or acquire existing ones. Or it may sell its remaining assets and distribute the proceeds to shareholders. Interestingly, it bought back some 7,953,800 shares lately.
The company’s net assets, 36 sen per share, are understated as it has unrealised gain of RM29.75 million on marketable securities (mainly shares of 104 Corp Taiwan) at end-Sept 2014 and an 8-storey office building off Jalan Sultan Ismail, KL acquired in 2005 and valued at only RM13.7 million.
This article first appeared in The Edge Financial Daily, on December 23, 2014.