- The stock price of 51job, Inc. (NASDAQ: JOBS) increased by 9.1% today. This is why it happened.
The stock price of 51job, Inc. (NASDAQ: JOBS) increased by 9.1% today. Investors responded positively to a report that a deal from an investor group is still on.
But the investor group buying 51job is reducing the takeover bid for the company by about 28%. This consortium — which is backed by DCP Capital Partners — proposed to lower the offer to $57.25 per share in cash, down from an agreed bid of $79.05 per share. But this new price represents a 25% premium to 51job’s previous closing price in New York.
51job was reportedly considering reducing the $5.7 billion offer in order to reflect the changes in the market environment. The buyer group also includes Ocean Link Partners and 51job Chief Executive Officer Rick Yan. The pricing was adjusted to reflect tighter Chinese regulatory policies along with the economic challenges from Covid-19. These proposed changes will also make sure that the deal complies with data security rules in China.
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