Yahoo to sell half of its Alibaba stake for $7.1 billion
Mon, 05/21/2012 - 01:01 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.
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.
Chinese online commerce giant Alibaba plans to borrow $3 billion to buy back the stake Yahoo! owns in the company, a report said Thursday, as the struggling US Internet firm overhauls its Asia holdings.Alibaba, whose Hong Kong shares were suspended from trading on Thursday, is raising money from six banks and the loan is expected to be finalised this month, the Wall Street Journal said, citing unidentified sources.Alibaba gave no reason for the trading halt and its spokesman John Spelich declined to comment when contacted by AFP.
HONG KONG (Reuters) - Sovereign wealth fund China Investment Corp (CIC) is in advanced talks to buy an up to $2 billion stake in Alibaba Group , sources told Reuters, as the Chinese e-commerce powerhouse looks to secure the last of the funding it needs to buy back part of its stake from Yahoo Inc . Yahoo and Alibaba struck a deal last week whereby the Chinese company agreed to buy back up to half of the 40 percent stake in itself held by Yahoo for $7.1 billion, valuing Alibaba at $35 billion. Alibaba is raising $4. ...