51job Buyer Slashes Offer Price By 28%

• 51job Inc (NASDAQ: JOBS) has received a proposal from Garnet Faith Limited to reduce the merger consideration from $79.05/share to $57.25/share.

• In June 2021, 51job inked a definitive Agreement and Plan of Merger with Garnet Faith in a transaction implying an equity value of the company of ~$5.7 billion.

• The proposal also includes reducing the combined foreign ownership of DCP Capital Partners II, L.P., and Ocean Link Partners Limited in the company to 9.99%.

• The merger consideration reduction proposal reflects the recent legislative and regulatory developments surrounding China's national security, cybersecurity, and data security.

• The consortium members and their PRC counsel are of the view that the updated transaction will not trigger any regulatory filing in the PRC.

• Price Action: JOBS shares are trading higher by 10.3% at $50.57 on the last check Wednesday.

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