Cautious investors force Seek to pull offer

ONLINE jobs group Seek has pulled its $125 million subordinated debt issue after a cool response from a risk-averse retail market.

ONLINE jobs group Seek has pulled its $125 million subordinated debt issue after a cool response from a risk-averse retail market.

The company said it was "not satisfied" that it would achieve acceptable terms at this point in time and believes it is not in the best interests of shareholders to proceed.

"Seek is strongly capitalised and funded given its existing bank facilities ... cash held on its balance sheet and the continuing strong cash flow," the company said in a statement yesterday.

Analysts said the company remained in a strong capital position but other hybrid offers from top-rated financial stocks were likely to be more attractive to investors.

"The decision to pull the raising is a positive for the long-term development of the country's hybrid capital market," Investorfirst Securities analyst (and BusinessDay columnist) Stewart Oldfield said. "In this instance, professional investors were not offered an appropriate mix of risk and reward."

Seek is one of the best-performing local media stocks, having traded as high as $7.55 in the last 12 months. But it declined yesterday, closing 2.4 per cent lower at $6.50.

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