Yahoo to sell half of its Alibaba stake for $7.1 billion
Mon, 05/21/2012 - 00:01 EDT - LA Times
The move could help it appease shareholders by enabling it to pay dividends or buy back its own shares.HONG KONG — Struggling Internet company Yahoo Inc. has agreed to sell half of its 40% stake in Chinese e-commerce group Alibaba for about $7.1 billion.
(HONG KONG) — Struggling Internet company Yahoo Inc. has agreed to sell half of its 40 percent stake in Chinese e-commerce group Alibaba for about $7.1 billion. The deal, announced Sunday in the U.S., will see Alibaba Group buying back the stake from Yahoo Inc.
The recently-announced deal between ChinaVision Media Group Ltd. and Alibaba Group Holding Limited will go through a subsidiary, which will control 60% of ChinaVision’s enlarged share capital after purchasing 12.5 billion shares at HK$0.50 apiece (a discount of nearly 21% to ChinaVision’s opening price on the Hong Kong stock exchange today).
Following the announcement, ChinaVision’s stock price increased by over 187% to close at HK$1.84 on the Hong Kong Stock Exchange during trading today.
Alibaba has embarked on a global journey since conducting its record-breaking $25 billion IPO in September 2014. Alibaba’s executive vice chairman, Joseph Tsai said in an interview in February that the e-commerce giant will be looking to build on its success in China, and make Alibaba a global brand.
The final countdown for possibly the world’s largest IPO has begun. The Chinese e-commerce giant Alibaba Group Holding Ltd (BABA) is set to start trading at the New York Stock Exchange tomorrow. The company’s executives were on a roadshow since last Monday, meeting institutional investors to lure them into purchasing Alibaba stock. The roadshow ended yesterday; the Chinese company will announce its IPO price today.
The battle to reign supreme in the Chinese internet retail market has heated up once more. Alibaba Group Holdings Ltd., the country’s largest e-commerce player, announced it would pay $692 million to acquire a 35% stake in department store operator, Intime Retail Group Co Ltd.