New Zealand – Job board operator Trade Me strikes deal to be acquired

Trade Me Group Limited (NZSE: TME) struck a deal to be acquired by London-based private equity firm Apax Partners for NZD 6.45 per share for 100% of the shares. The deal gives Trade Me enterprise value of NZD 2.74 billion (USD 1.88 billion).

Trade Me operates several ecommerce websites including jobs website Trade Me Jobs; it’s based in Wellington, New Zealand. The deal is subject to shareholder and court approval.

Apax’s offer represents a multiple of 16.7x on Trade Me’s underlying fiscal 2018 EBITDA of NZD 164 million (USD 112.8 million).

A shareholder vote on the deal is expected in April, and an independent advisor recommended Trade Me shareholders vote in favor of the scheme.

Apax Partners, a London-based private equity firm, initially offered NZD 6.40 per share, but a second firm, Hellman & Friedman, this month offered NZD 6.45 per share. Apax’s new offer matched Hellman’s.

“The Apax funds have increased their offer price since the indicative proposal, following the completion of their due diligence,” Chairman David Kirk said. “After careful consideration, the board has unanimously concluded that this offer is consistent with our efforts to deliver maximum value for shareholders.”

Kirk continued, “we’re confident Trade Me would have a successful standalone future, but we believe the certainty of the cash offer and material premium would be an attractive outcome and it merits being put to shareholders with our recommendation, in the absence of a superior proposal.”

This week, Trade Me CEO Jon MacDonald announced he would hold off leaving the company amid the bids to acquire the firm.

Source:: http://www2.staffingindustry.com/row/Editorial/Daily-News/New-Zealand-Job-board-operator-Trade-Me-strikes-deal-to-be-acquired-48392