Alibaba.com's privatization bid approved
By Ding Yining |
May 26, 2012, Saturday
|
Print Edition
Print Edition
ALIBABA.COM, the business-to-business site under Alibaba Group, has won approval for a US$2.5 billion privatization plan from minority shareholders to buy out the Hong Kong-listed company, paving the way for a potential overall listing of the e-commerce group.
Alibaba Group will buy back the 27 percent of Alibaba.com's shares it didn't already own at HK$13.50 apiece in cash, the same as its offering price in 2007. The offer could cost up to HK$19.6 billion (US$2.5 billion)
Approximately 83.78 percent of shareholders voted in favor of the privatization plan, the company said in a filing to the Hong Kong stock exchange yesterday. They represent about 95.5 percent of total value of the outstanding shares, more than the 75 percent required by the Hong Kong securities watchdog. June 8 will be the last trading day of the stock, and it will be delisted on June 20.
Alibaba's B2B unit has been lacking momentum for the past couple of years due to the sluggish global economy.
In the first quarter of this year, profit fell 25 percent from a year ago to 339 million yuan (US$53.524 million) as the number of paying members declined after it shifted strategy in early 2011 to improve service instead of seeking to increase its member base.
The approval came less than a week after Alibaba Group said it was buying back 20 percent, or roughly half, of Yahoo's stake in itself for US$7.1 billion.
Alibaba Group will buy back the 27 percent of Alibaba.com's shares it didn't already own at HK$13.50 apiece in cash, the same as its offering price in 2007. The offer could cost up to HK$19.6 billion (US$2.5 billion)
Approximately 83.78 percent of shareholders voted in favor of the privatization plan, the company said in a filing to the Hong Kong stock exchange yesterday. They represent about 95.5 percent of total value of the outstanding shares, more than the 75 percent required by the Hong Kong securities watchdog. June 8 will be the last trading day of the stock, and it will be delisted on June 20.
Alibaba's B2B unit has been lacking momentum for the past couple of years due to the sluggish global economy.
In the first quarter of this year, profit fell 25 percent from a year ago to 339 million yuan (US$53.524 million) as the number of paying members declined after it shifted strategy in early 2011 to improve service instead of seeking to increase its member base.
The approval came less than a week after Alibaba Group said it was buying back 20 percent, or roughly half, of Yahoo's stake in itself for US$7.1 billion.
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