Seek shares dip as Xref takeover collapses
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More news: Seek shares slipped in early trade on the ASX after the job listings company's proposed takeover of HR platform Xref fell through, with the acquisition target's shareholders voting down the move.
Seek shares were down 0.7% to $22.90 by 11am AEDT.
Shares in small cap Xref plunged 22.6% to 12 cents following the announcement.
Xref shareholders vote down Seek acquisition
The news: Shareholders of global human resources technology platform Xref have voted against the proposed acquisition by job listings company Seek, first announced in October.
The numbers: While 67.6% of votes cast were in favour of the scheme, it fell short of the required 75% threshold.
Xref and Seek, which previously announced that the $0.218-per-share proposal was its best and final offer, have agreed to terminate the transaction with immediate effect.
The context: Sydney-based Xref, an online reference checking tool, received a unanimous recommendation from its board of directors for the scheme. The company said it will "continue to execute its growth strategy as an independent business and will release a business update in the coming days".
Seek said it will "continue to explore other opportunities to grow placements, grow yield and improve operating leverage, which may include alternative approaches to achieving the benefits that the scheme would have provided."
The sources: ASX announcement, ASX announcement
