51job plunges on update on going-private transaction

51job Inc. dropped 21% in premarket trading after the Chinese human resources company said the buyer consortium formed to acquire the company has been in talks with regulators on recent regulatory changes that may impact the transaction.

The consultation process by the buyer consortium is currently ongoing and a “clear” timeline for its completion can’t be provided, 51jbob said in a statement. The company will file an update 13E-3 transaction statement as soon as possible.

In June, 51job agreed to a going-private transaction with Garnet Faith for $79.05/share, implying an equity value of $5.7B.

Author: Joshua Fineman, Seeking Alpha

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