News offloads stake in Seek Asia

ONLINE jobs board operator Seek has struck a deal with News Corporation to buy the media heavyweight out of Seek Asia.

It will pay $157 million for News Corp’s 13.75 per cent stake in the Asian operation. The deal means Seek will take full ownership of the division.

Seek announced yesterday it had entered into a binding agreement with News, publisher of mastheads including the Cairns Post and The Australian, and expected to complete the deal by March 16.

It will use existing debt facilities to fund the transaction.

The jobs advertiser said the deal would not affect the forecast it issued last month for revenue growth of 20 to 25 per cent in the year to June.

Seek chief executive and cofounder Andrew Bassat said it followed changes in the organisation structure at Seek that meant the Asian division would be better integrated.

“This transaction is a logical outcome for both News Corporation and Seek and I would like to thank News Corporation for being a valuable partner,” he said.

“We are very excited about the growth potential for Seek Asia, which operates in seven … countries across the region.

“This business has managed a complex integration and we are already seeing good operational and financial results from our recent reinvestment.”

Seek shares closed 1.9 per cent, or 37¢, higher yesterday at $19.96.

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