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 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.
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.
According to industry sources, Alibaba Group Holding Ltd (BABA) has pushed back the date for its initial public offering (IPO). The Chinese e-commerce giant will now go public following US Labor Day on September 1, as it seeks approval from regulators regarding its prospectus. Alibaba’s prospectus has been amended thrice since it first filed for an IPO in May.