Monday, May 5, 2014

Jobstreet's dividend

For those whom have enquired about Jobstreet's dividend from the sale of the core business to Seek.com, here is a little clue - estimated to be RM2.40.


As for the Net Asset value of the shares, post dividend distribution - RM0.3572 per share.


17 comments:

Bn911 said...

Hi Felicity, do u know why FIL Limited and *Pandanus Partners L.P. keep disposing share? Will u accumulate more Jobstreet share at current price? Thanks.

felicity said...

It is hard to understand why Fidelity has been selling, but there potentially could be 2 reasons. First Fedelity also holds Seek, secondly it does not meet the objectives of Fidelity to hold large chunk of business that no longer owns the job advertising business in future. Unlike us, it is not so easy for Fidelity to sell with the large chunk it holds

felicity said...

I have been asking people to buy at this price

Bn911 said...

Hi Felicity, If Fil keeps disposing, price hardly up more than RM2.5, am i right? Besides, Fil still has around 5% stake in Jobstreet, dont know when the sale can end.

felicity said...

You will get RM2.4 from the dividend which will basically cover the cost of purchase currently. hence over the slightly longer period is worth it. :)

Bn911 said...

Felicity, will u sell when price above RM2.6 before dividend payout or wait until dividend payout and keep for long term? Thanks a lot.

Bn911 said...
This comment has been removed by the author.
Bn911 said...

Felicty, let say I have 10 lot of jobstreet with total cost RM24200.Once I receive cash distribution,total money invested left just RM200, what will happen to my RM200, how is the calculation? Thanks ya.

felicity said...

HI

It does not work the way you think. After the business is sold, Jobstreet will distribute around RM2.40 per share to the shareholders. As the core business for Jobstreet is already sold, it will potentially be a PN17 company as it does not already have a significant business. While that is true, Jobstreet Bhd will still have some assets (building, shares) which is still worth RM0.3672 per share as highlighted. Hence, after you have gotten your dividend say RM2.40 per share, your remaining share should be worth not far from the RM0.3672 per share assuming Net Asset is the method of valuation.

Fung C.F. said...

My wild guess: the share price will go up right before the entitlement date of special dividend in mid July (though I'm not sure what price).

If it still stays at the RM2.40 zone, it would be a great idea to buy some as we will get back our "principal" in 2 weeks time. Anything left is free for shareholders.

This kind of arbitrage deal is kinda meaningless to retail investors, as our capital is too small to see the tangible returns. Hence, a short holding period is essential.

Bn911 said...

Today announcement, is this a good move?

PROPOSED ACQUISITION OF THE REMAINING 40.00% EQUITY INTEREST IN JOBSTREET.COM PHILIPPINES, INC (“JSP”) COMPRISING 5,645,600 ORDINARY SHARES OF PHILLIPINES PESO(“PHP”)1.00 EACH IN JSP BY JOBSTREET.COM PTE LTD, A WHOLLY-OWNED SUBSIDIARY OF JOBSTREET FOR A PURCHASE PRICE OF RM120,536,000 TO BE SATISFIED VIA THE ISSUANCE OF 49,400,000 ORDINARY SHARES OF RM0.10 EACH IN JOBSTREET (“JOBSTREET SHARES”) AT AN ISSUE PRICE OF RM2.44 PER JOBSTREET SHARE ("PROPOSED ACQUISITION")

felicity said...

It is part of the process. The acquisition of Jobstreet philippines is to acquire whatever that is not owned and to sell the Seek.com

Ironman said...

Hi Felicity, what do think on the possibility of this buy-over deal could be blocked by Singapore government because of competition law?

felicity said...

Really hard to say on the anti-competition part by Singapore's CCS.

Do not have seen that many cases that they have gone against. if Seek and Jobstreet are able to provide enough points that there are still competition coming from LinkedIn for example, should be through...

山下聖人 said...

Dun think assets left over worth rm0.30

messi said...

yes, its worth about 40sen! also, dividends of 1.75sen and 0.50sen coming!

messi said...

yes, its worth about 40sen! and dividends of 1.75sen and 0.5sen coming!