- Sale Price of Approximately $85
Million, or 101 Billion South Korean
Won
- Unlocks Shareholder Value at Substantial Premium to
Monster's Current EBITDA Multiple
- Sale Increases Company's Liquidity and Provides Financial
Flexibility
- Transaction Expected to Close in October 2015
WESTON, Massachusetts,
Sept. 28, 2015 /PRNewswire/
-- Monster Worldwide, Inc. (NYSE:MWW) announced today that it
has entered into an agreement to sell its 50.01% ownership position
in its South Korean operation, JobKorea, to H&Q Korea for
approximately $85 million. The
transaction is expected to close in October
2015. In December 2013,
H&Q Korea acquired 49.99% of JobKorea from Monster and since
that time the two companies have worked in partnership in managing
the business. The sale of Monster's remaining stake in the
operation is consistent with Monster's continued strategy of
unlocking value and sharpening its focus on its core online
recruitment platform.
Tim Yates, President and Chief
Executive Officer of Monster, said, "This transaction reflects our
commitment to our strategy of focusing on our core value
proposition while also demonstrating the underlying value of
Monster's global enterprise. We have enjoyed our ten year
relationship with the management and operating team at JobKorea and
our two year partnership with H&Q Korea. We wish them
well as they build on their leading position in Korea's online
recruitment market and look forward to the opportunity to continue
working together through our international cross-selling
arrangement. The proceeds from this transaction will provide added
financial flexibility as we move forward toward our objective of
enhancing shareholder returns as part of our capital allocation
program."
The Company has historically consolidated the results of
JobKorea. For its third and fourth quarter 2015 financial
statements, the Company will present JobKorea's financial results
as a discontinued operation. The financial impact to net
income from continuing operations for the third quarter of 2015
related to JobKorea is expected to be $0.01 per share.
About Monster Worldwide
Monster Worldwide, Inc. (NYSE:
MWW) is a global leader in connecting people to jobs, wherever they
are. For more than 20 years, Monster has helped people improve
their lives with better jobs, and employers find the best talent.
Today, the company offers services in more than 40 countries,
providing some of the broadest, most sophisticated job seeking,
career management, recruitment and talent management capabilities.
Monster continues its pioneering work of transforming the
recruiting industry with advanced technology using intelligent
digital, social and mobile solutions, including our flagship
website monster.com® and a vast array of products and services. For
more information visit http://monster.com/about.
Special Note: The statements in this
release that are not strictly historical, including, without
limitation, statements regarding the Company's strategic direction
and prospects, constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward-looking
statements involve certain risks and uncertainties and, therefore,
actual results may differ materially from what is expressed or
implied herein. Factors that could cause results to differ
materially from those expressed or implied by such forward-looking
statements include, but are not limited to, economic and other
conditions in the markets in which we operate, risks associated
with acquisitions or dispositions, competition, and the other risks
discussed in our Form 10-K and our other filings made with the
Securities and Exchange Commission, which discussions are
incorporated into this release by reference. Many of the factors
that will determine the Company's future results are beyond the
ability of management to control or predict. Readers should not
place undue reliance on the forward-looking statements in this
release as they reflect management's views only as of the date
hereof. The Company undertakes no obligation to revise or update
any of the forward-looking statements contained in this release or
to make any other forward-looking statements, whether as a result
of new information, future events or otherwise.
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