Chinese online recruitment and classified ad service 51job Inc. says it has mutually agreed to terminate its business alliance agreement with Japan's Recruit Co. Ltd.
As of December 31, 2008, Recruit owned approximately 22.3 million common shares of 51job, representing 39.3% of fully diluted shares outstanding. This terminated agreement only ends the business dealings between the companies that was entered into on April 5, 2006, but ownership stakes remain unchanged.
"The business alliance agreement was intended to provide a framework for exploring potential business collaborations between 51job and Recruit in China for an anticipated three-year period. Although a formal agreement will no longer be in place, we remain committed to our investment in 51job and support the company's future growth and development," stated Hiroyuki Honda, director of 51job and director and executive vice president of Recruit.