Related News
Alibaba buys back 20% stake from Yahoo
By Ding Yining |
May 21, 2012, Monday
|
Online Edition
Online Edition
Alibaba Group Holding Co, China's largest e-commerce company, said today that it has reached a buyback deal with Yahoo Inc to buy back half of its stake Yahoo owns, or 20 percent of the stake in itself, for around US$7.1 billion.
Alibaba Group will pay Yahoo US$6.3 billion in cash and as much as US$800 million worth of newly issued Alibaba stocks.
"The transaction will establish a balanced ownership structure that enables Alibaba to take our business to the next level as a public company in the future," Alibaba Group chairman and chief executive officer Jack Ma said in a statement, referring to the deal which was reached after two years of negotiation.
Alibaba intends to finance the repurchase through its "cash, debt, equity as well as equity-linked financing," and the transaction is estimated to be closed within six months, the two companies said in a joint statement today.
In February, Alibaba announced a privatizing plan valued at US$2.5 billion of its Hong Kong-listed business-to-business site Alibaba.com to "be responsible for our shareholders and better serve clients," according to Alibaba's Ma.
Yahoo bought 40 percent of stake in Alibaba Group in 2005 for US$1 billion.
Market watchers suggested repurchasing Yahoo's stake in Alibaba Group is a key step in the listing of Alibaba Group and will allow investors to have a fair valuation of the whole group.
Alibaba Group will pay Yahoo US$6.3 billion in cash and as much as US$800 million worth of newly issued Alibaba stocks.
"The transaction will establish a balanced ownership structure that enables Alibaba to take our business to the next level as a public company in the future," Alibaba Group chairman and chief executive officer Jack Ma said in a statement, referring to the deal which was reached after two years of negotiation.
Alibaba intends to finance the repurchase through its "cash, debt, equity as well as equity-linked financing," and the transaction is estimated to be closed within six months, the two companies said in a joint statement today.
In February, Alibaba announced a privatizing plan valued at US$2.5 billion of its Hong Kong-listed business-to-business site Alibaba.com to "be responsible for our shareholders and better serve clients," according to Alibaba's Ma.
Yahoo bought 40 percent of stake in Alibaba Group in 2005 for US$1 billion.
Market watchers suggested repurchasing Yahoo's stake in Alibaba Group is a key step in the listing of Alibaba Group and will allow investors to have a fair valuation of the whole group.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
