Chinese recruitment platform Zhaopin rallies on Sequoia-backed bid of more than $1.1b

100 Yuan notes are seen in this illustration picture in Beijing November 5, 2013. REUTERS/Jason Lee/Files

Zhaopin Ltd. rallied the most since January as Sequoia China Investment Management joined the Chinese online employment recruiter’s management to take the company private in a bid that exceeded a previous offer.

The American depositary receipts jumped 7.6 percent to $16.05 on Thursday in New York. Trading volume of about 600,000 shares was almost nine times the daily average of the past three months. It was the best performance in the Bloomberg-China Equity Index, which rose 0.2 percent.

Zhaopin rose as senior managers including Chief Executive Officer Evan Sheng Guo and Sequoia offered $17.75 per ADR to take it private. That’s a 14 percent premium to the average price over the last 90 trading days and 25 cents more than a prior offer received in January. It’s among a record 42 Chinese companies that have announced plans to delist from U.S. markets as they seek potentially higher valuations either on the mainland or in Hong Kong. Only 13 have completed transactions in the period. Some have slumped on concern the government may curb such deals to support the existing market.

“Investors are worried that some of these deals may not go through,” Jun Zhang, head of China research at Rosenblatt Securities Inc., said by phone from San Francisco. “But it’s very unlikely that the Chinese government will shut the door on those re-listings completely.”

Momo Inc., the Chinese dating app maker that got a boost last month when an Alibaba Holding Group Ltd.’s finance affiliates joined the group seeking to buy it out, fell as much as 16 percent on Thursday, the most since its 2014 initial public offering. YY Inc., also a buyout target, slid as much as 5.3 percent.

Sequoia is involved in a number of Chinese buyout deals including Momo, Qihoo 360 Technology Co. and Jumei International Holdings Ltd.

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Bloomberg

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.