JobStreet.com acquired 20% of Innity

JobStreet.com , the company that I worked at, had just made acquisition of shares of Innity .

It is definitely great to see JobStreet.com , keeps on its aggressive mode, despite current financial instability in the region. Am sure after the financial instability in the region, JobStreet.com would be getting even stronger in the region!

Innity was just listed on 23rd June, and it is a company that focused on online advertising.

The press release is at here

The press release is reproduced below:-
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Date: 04 July 2008

Acquisition of 25,250,040 Ordinary Shares of RM0.10 each in Innity Corporation Berhad


1. INTRODUCTION

The Board of Directors of JobStreet Corporation Berhad (“JCB” or “the Company”) is pleased to announce that JCB had acquired 25,250,040 Ordinary Shares of RM0.10 each (the “INNITY Shares”) in Innity Corporation Berhad (“INNITY”) representing 20.07% of the entire enlarged issued share capital of INNITY at a total consideration of RM7,322,796 (“Acquisition”), details are as set out below:-


Announcement Details :

Date of acquisition Number of Ordinary Shares of RM0.10 each Circumstances by reason of which acquisition has occurred
30 June 2008 3,310,000 Private placement of new shares
30 June 2008 2,979,000 Bonus issue
30 June 2008 319,100 Acquisition from the open market
1 July 2008 5,278,064 Direct business transaction
1 July 2008 78,600 Acquisition from the open market
2 July 2008 3,489,176 Direct business transaction
2 July 2008 24,400 Acquisition from the open market
4 July 2008 3,771,700 Direct business transaction
4 July 2008 6,000,000 Direct business transaction
TOTAL 25,250,040

The total number of 11,964,764 Ordinary Shares of RM0.10 each in INNITY acquired by the Company from 30 June 2008 to 1 July 2008 for a total consideration of RM3,454,158, as disclosed above, has been included in the announcement released to Bursa Malaysia Securities Berhad (“Bursa Securities”) pursuant to Paragraph 9.21 of the Listing Requirements of Bursa Securities on 2 July 2008 (Reference no: CC-080702-65068).

The total number of 13,285,276 Ordinary Shares of RM0.10 each in INNITY acquired by the Company from 2 July 2008 to 4 July 2008 for a total consideration of RM3,868,638, as disclosed above, has been included in the announcement released to Bursa Securities pursuant to Paragraph 9.21 of the Listing Requirements of Bursa Securities on 4 July 2008 (Reference no: CC-080704-64433).

2. INFORMATION ON INNITY

INNITY is incorporated on 6 March 2007 having its registered office at Level 14, Uptown 1, No. 1 Jalan SS21/58, Damansara Uptown, 47400 Petaling Jaya, Selangor Darul Ehsan. INNITY was subsequently converted into a public limited company on 26 March 2007 and eventually listed on the MESDAQ Market of Bursa Malaysia Securities Berhad on 30 June 2008. The principal activities of INNITY are in the provision of technology-based online advertising solutions that facilitate the publishing of online advertising using an in-house developed technology platform. The current authorised share capital of INNITY is RM25,000,000 divided into 250,000,000 ordinary shares of RM0.10 each and its paid-up share capital is RM12,582,128.70 divided into 125,821,287 ordinary shares of RM0.10 each.

For the financial year ended 31 December 2007, the proforma consolidated profit after tax of INNITY is RM2.51 million and its proforma consolidated net assets amounted to RM7.4 million.


3. VENDORS’ ORIGINAL COST OF INVESTMENT

As the details of the vendors are not make known to the Company, therefore the Company would not be able to provide the original cost of investment to the vendors of the INNITY Shares.


4. ASSUMPTION OF LIABILITIES


JCB will not be assuming any liabilities, including contingent liabilities and guarantees arising from the Acquisition.



5. SOURCE OF FUNDING


The Acquisition was funded by internally generated funds.



6. RATIONALE OF THE ACQUISITION

The Acquisition will enable JCB to indirectly participate in the growth of the online advertising markets in Malaysia and in the region.


7. EFFECTS OF THE ACQUISITION

The Acquisition will not have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding of JCB for the financial year ending 31 December 2008.


8. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTEREST

None of the Directors and/or major shareholders and/or persons connected with them have any interest, direct or indirect, in the Acquisition.

9. STATEMENT BY BOARD OF DIRECTORS

The Board of Directors of JCB, having taken into consideration all aspects of the Acquisition, is of the opinion that the Acquisition is in the best interest of the JCB and its subsidiaries.


10. APPROVALS REQUIRED

The Acquisition is not subject to approval of the shareholders of JCB and any relevant government authorities.


11. PROSPECTS OF THE ACQUISITION


The outlook for the online advertising market in Malaysia remains positive. The online advertising market is expected to grow from its current size of RM32.2 million in 2007 to RM269.5 million in 2012, registering a CAGR of 52%. The online advertising market in Malaysia is experiencing tremendous growth due to huge demands, and will remain a high growth market for the foreseeable future. Reasons for this include the government’s drive to increase internet and broadband penetration, changing dynamics in consumer purchasing behaviour, marketers demanding more accountability for their ad spending, the various features and options unique to online advertising and the ability to facilitate targeted marketing.


(Source: INNITY’s prospectus dated 4 June 2008)


12. RISK FACTORS

INNITY is subject to risks inherent in the advertising industry which include amongst others, competition, technological changes, shortage in skilled professionals and economic, political and regulatory risks. In addition, INNITY’s profitability may also be affected by many factors including increasing operating costs, competition, security and systems disruption and loss of technological superiority over its competitors. Any changes involving these factors may have a material adverse effect on INNITY’s business, operating results and financial condition.

The Company’s investment in INNITY’s shares is subject to risks inherent in the investments of quoted securities. The trading price of INNITY’s shares could be volatile and subject to wide fluctuations in response to factors such as actual or anticipated variations in its quarterly operating results, announcements of technological innovations or new services by INNITY or its competitors, changes in financial estimates by securities analysts, conditions or trends in the online advertising industry, changes in the market valuations of other similar companies, announcements by INNITY or its competitors of significant acquisitions, strategic partnerships, joint ventures or capital commitments, additions or departures of key personnel, sales of its shares or other such securities in the public market and other events or factors. Market fluctuations, as well as general political and economic conditions such as recession or interest rate or currency rate fluctuations, may also adversely affect the market price of INNITY’s shares.


13. DEPARTURE FROM THE SECURITIES COMMISSION’S GUIDELINES ON THE OFFERING OF EQUITY AND EQUITY-LINKED SECURITIES

The Board of Directors of JCB is not aware of any departure from the Securities Commission’s Guidelines on the Offering of Equity and Equity-Linked Securities in undertaking the Acquisition.


This announcement is dated 4 July 2008


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