51job private equity buyer is said to be mulling lowering $5.7B offer (update)

Jan. 12, 2022 7:51 AM ET51job, Inc. (JOBS)RCRRFBy: Joshua Fineman, SA News Editor6 Comments

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  • Update 8:02am: Adds potential amount of price cut.
  • The private equity firm that's purchasing 51job (NASDAQ:JOBS) is said to talking about a possible price cut to its $5.7B offer. 51job gained 1.4% in premarket trading.
  • A group led by DCP Capital Partners is evaluating lowering its offer due to changes in the market environment since its offer was announced last year, according to traders, who cited a Bloomberg report. The buyer considering cutting price by more than 20%.
  • The consortium is also said to be considering changes to the structure of its offer to help in gaining China regulatory approval.
  • The report comes after JOBS plunged almost 20% on Nov. 8 after the Chinese online recruitment firm said the buyer consortium formed to acquire the company has been in talks with regulators on recent regulatory changes that may impact the transaction.
  • In late November Dealreporter said that that buyer consortium was talking to regulators on issues concerning data security and privacy. At the time, the report said that the main members of the buyer group, 51job CEO Rick Yan, DCP, Ocean Link and Recruit (OTCPK:RCRRF) were still committed to the $79.50/share purchase, though the timeline was unclear.
  • In June, 51job agreed to a going-private transaction with Garnet Faith for $79.05/share, implying an equity value of $5.7B.

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