JobStreet ... Cash Co After Disposing Online Job Portal Biz

It has completed the disposal of its online job portal business to SEEK for rm1.89 billion and distributed almost all of the proceeds to shareholders via special dividend of rm2.65 per share.

Following the sale, it is now (Dec 2014) a cash company. Under PN17 of the listing requirements, it has formulate plan to regularize its financial condition within 12 months.

There are several possible outcomes. It may start new businesses or acquire existing ones. Or it may sell its remaining assets, and distribute the proceeds to shareholders.

The company’s net assets, 35 sen per share are understated as it has unrealized gain of rm29.75 million on marketable securities (mainly shares of 104 Corp Taiwan) at end Sept 2014 and an 8 storey office building off Jalan Sultan Ismail, KL acquired in 2005 and valued at only rm13.7 million.

Jobstreet: Dividend RM2.6675!!

What a fruitful result after a long wait since Jun 2014. From a purchase price RM2.44 @ Jun 2014 until RM2.62 @ August 2014 and closing price RM2.89 at this moment with a cash repayment of RM2.6675. Do not forget there are a few more dividend payout during this period as well.

At this stage, the return is 14.2% within 6 months. I believe there is more to come because their major shareholders are buying back market share actively recently.

After cash repayment, company net asset is still have around RM0.36.