Japanese jobs site operator En-Japan Inc. has decided to transfer its majority stake in JapanWork, a job-search site for foreigners, to a local investor. Falling recruitment demand was cited as a reason for the decision.

In July, En-Japan acquired 51% of the shares in JapanWork for Y234 million ($2.2 million). The company also entered into a basic agreement to make JapanWork a wholly-owned subsidiary of En-Japan, contingent on acquiring the remaining shares through a stock swap.

The acquisition was cancelled after En-Japan say it couldn’t overhaul JapanWork’s core business model.

“… It is appropriate to cancel the basic agreement for a stock swap to make the company into our wholly-owned subsidiary and to instead transfer the shares of JapanWork held by our company to Yuto Suzuki who serves as the representative director of JapanWork,” the company said.

En-Japan owns and operates a variety of recruitment marketplaces and job tools in Japan. The group also owns Vietnam-based staffing firm Navigos Group, which operates recruitment marketplace VietnamWorks.com.

En-Japan said the impact from the transfer on its financial results would be minor as it had already recorded a Y235 million loss related to JapanWork in Q1. En-Japan saw overall revenue fall 24.1% year-on-year to Y10.4 billion ($98 million) in the first quarter of FY2021 ended June 30.

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