News: Seek to float China business

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SEEK Limited (ASX:SEK) chief executive Andrew Bassat says the company has to float its Chinese employment website Zhaopin to take advantage of a preference from local workers and government towards listed companies.

 

Seek will maintain a controlling stake in Zhaopin following the float, but says there are benefits to its plans to sell down its ownership of the asset, of which it holds 80 per cent.

 

Mr Bassat says it’s easier to attract and retain staff to a listed company and the Chinese government also treated listed vehicles differently.

 

He says the proceeds from the float would be used to invest in Seek's overseas opportunities. 

 

The company flagged it may return some capital to shareholders.

 

Seek delivered a net profit of $313.7 million in fiscal 2013.