Seek’s Chinese recruiting site Zhaopin says ‘in discussions’ after Alibaba rumours

Seek’s Chinese recruiting site discussing if new investors could better support its long-term growth aspirations.

Samantha Bailey

The company said the discussions, “may or may not lead to changes with respect to Zhaopin”. Picture: Aaron Francis/The Australian

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3:31PMSeptember 16, 2020

Job classifieds company Seek has told the market that its Chinese recruiting site, Zhaopin, is holding discussions with “a number of parties” to assess whether the introduction of new investors could better support its long term growth aspirations.

The company said the discussions, “may or may not lead to changes with respect to Zhaopin”.

The announcement came on the back of media reports that suggested e-commerce giant Alibaba is looking to invest hundreds of millions of dollars in the recruitment site.

Seek shares shot up on Wednesday amid speculation of a deal and at 3pm, were trading 8.7 per cent higher at $20.88 each.

The company swung to a full-year loss for fiscal year 2020 after the coronavirus crisis ravaged the jobs market.

Unveiling an annual loss of $111.7m last month, compared to a profit of $180.2m the prior year, chief executive Andrew Bassat flagged an uncertain outlook and said near term profits would continue to take a hit as the COVID-19 pandemic continued.

“The current macro outlook is highly uncertain,” he said at the time.

Still, Mr Bassat said that Zhaopin had delivered a strong result, successfully navigating a period of challenging operating conditions.

Revenue for the Zhaopin business lifted 12 per cent for the full-year through June 30 on a constant currency basis.