According to people familiar with the matter, a consortium led by Dehong Capital is about to agree to buy 51 job.The deal values the Chinese human resources services company at about $5.3 billion.
The consortium, which also includes private equity firm Guling Investment and 51 job co-founder and chief executive Zhen Ronghui, is in advanced talks to buy the New York-listed company for about $79.05 per ADS, according to people familiar with the matter. People familiar with the matter, who spoke on condition of anonymity because the matter was not made public, said the deal could be announced as soon as Monday.
The offer represents a 5.9 per cent premium to 51 job's latest closing price and is similar to Dehong's initial plan last September. It will be one of the largest acquisitions of Chinese companies listed in the US so far this year.
The consortium's acquisition funds are mainly from domestic banks, according to people familiar with the matter. Japan's Recruit Holdings Co. is currently 51 job's largest shareholder, with 34.8% of the shares, and plans to sell a small number of shares and continue to hold the rest.
Zhen Ronghui holds about 19.2 per cent of the shares, which is bound to increase to nearly 40 per cent, while Dehong Capital and Guling Investment will collectively hold more than 20 per cent. Negotiations are continuing and the details and timing of the deal are likely to change, according to people familiar with the matter.
Representatives of 51 job, Dehong Capital, Guling Investment and Recruit could not immediately be reached for comment.