51job.com (JOBS) has formed a business alliance with Recruit Co., Ltd., a leading Japanese human resource services company.
Under the terms of the agreement, 51job and Recruit will collaborate on the development of 51job's human resource products and services in China, with Recruit sharing its extensive management knowledge and technical expertise.
In addition, the two companies will establish a corporate planning group within 51job to assess further opportunities in the human resources industry and potentially new businesses in other sectors in China.
51job and Recruit intend that the strategic alliance will include Recruit's active involvement in 51job's business development activities and cooperation between the two companies in certain new business areas.
51job also says Recruit has agreed to purchase in a private transaction a total of 8,452,918 common shares, or approximately 15% of 51job's issued and outstanding common shares as of December 31, 2005, from shareholders at a price of US$13 per common share.
In addition, the agreement provides for an option that would allow Recruit to purchase up to an additional 25% of common shares from these shareholders over a three-year period at purchase prices per common share to be calculated based on a pre-agreed formula, resulting in Recruit holding an aggregate 40% of 51job's issued and outstanding common shares as of December 31, 2005.
51job understands the closing of the proposed transaction for the 8,452,918 common shares is expected to be in mid-April and subject to certain terms and conditions.