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 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.
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 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.