logo
Share SHARE
FONT-SIZE Plus   Neg

Alibaba To Invest $807 Mln In Cainiao; To Invest $15.2 Bln In Logistics Network

Alibaba Group Holding Limited (BABA) announced late Monday that it has agreed to make an additional investment of 5.3 billion Chinese yuan or $807 million to increase its ownership of logistics affiliate Cainiao Smart Logistics Network Ltd. to a majority stake of 51%.

Alibaba also announced its intention to invest 100 billion yuan or $15.2 billion over the next five years to further strengthen its global logistics network.

According to the firm, the move is a further step to implement its New Retail strategy.

Alibaba said its global logistics network aims to realize its mission of fulfilling orders in China within 24 hours and within 72 hours anywhere in the world.

Upon completion of the transaction, Alibaba's stake in Cainiao will increase to 51% from 47%, and Alibaba will gain one additional new seat on Cainiao's board of directors, increasing its board representation to four out of seven seats.

The additional investment of $15.2 billion over the next five years will be used to increase R&D in logistics data technology, as well as for development of smart warehousing, smart delivery and global logistics infrastructure.

This transaction is expected to be completed in October 2017, subject to satisfaction of customary closing conditions.

Following the completion of the deal, financial results of Cainiao will be consolidated under Alibaba Group and reported as part of the core commerce business segment.

Credit Suisse acted as financial advisor to Alibaba and Morgan Stanley acted as financial advisor to Cainiao.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
World's largest oil company Saudi Aramco's initial public offering is on track and the listing will be in the second half of 2018, CEO Amin Nasser said in an exclusive interview with CNBC. There have been reports that the much awaited IPO might be delayed by one year. Taco Bell, the Mexican fast food chain of Yum! Brands Inc., is reportedly testing a new dessert product called the "Kit Kat Chocoladilla" at select locations in Wisconsin. It was tested last year in the UK. Nick Caporella, the chief executive officer of National Beverage Corp., has lashed out at short sellers after his company's shares declined more than 22 percent this month from their September 11 peak. In a statement, Caporella noted that less than 15 percent of the daily volume traded on major exchanges is financially driven by company fundamentals.
comments powered by Disqus
Follow RTT