Seek shares lift on Latin America divestments
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More news: Shares in Seek have risen more than 3% to $23.38 in early trade on the ASX after the job listings company said it would sell down majority stakes in two Latin American platforms.
The two businesses — OCC Mexico and Catho Online — will be sold for a cash consideration of US$85 million ($128 million). Seek will use the proceeds to reduce debt and said it would not impact its FY24 guidance.
Seek to divest Latin American assets for $128 million
The news: Seek has agreed to sell down its majority stakes in two Latin American job listings platforms — OCC Mexico and Catho Online — to Spanish company Red Arbor.
The numbers: Seek will sell the two businesses for a cash consideration of USD85 million ($128 million), with USD20 million of that to be held in escrow as security against certain representations and warranties given by Seek.
The divestment will result in a net loss of $15 million to $35 million, the company said.
The context: Seek said it will use the proceeds to reduce debt and that it would not impact its FY24 guidance. The job listings company reported a slide in half-year profit in February and outlined a weaker outlook for FY24 amid slowing volumes, indicating a decline in both profit and revenue over the previous year.
The source: ASX announcement
