51job Buyer Slashes Offer Price By 28%

51job Inc JOBS has received a proposal from Garnet Faith Limited to reduce the merger consideration from $79.05/share to $57.25/share.
In June 2021, 51job inked a definitive Agreement and Plan of Merger with Garnet Faith in a transaction implying an equity value of the company of ~$5.7 billion.
The proposal also includes reducing the combined foreign ownership of DCP Capital Partners II, L.P., and Ocean Link Partners Limited in the company to 9.99%.
The merger consideration reduction proposal reflects the recent legislative and regulatory developments surrounding China's national security, cybersecurity, and data security.
The consortium members and their PRC counsel are of the view that the updated transaction will not trigger any regulatory filing in the PRC.
Price Action: JOBS shares are trading higher by 10.3% at $50.57 on the last check Wednesday.