Alibaba Cancels Cainiao Hong Kong IPO

Estimated read time 1 min read

Alibaba cancelled its intended Hong Kong initial public offering (IPO) for its logistics division, Cainiao. Alibaba intends to pay up to $3.75 billion for Caniao shares that it does not already own in order to raise its 64% holding position to 100%. Cainiao is valued at $10.3 billion according to the remaining stock acquisition offer made to employees and minority investors. Cainiao is essential to the Alibaba’s plan to “win in e-commerce by regaining market share and driving growth,” according to Alibaba chairman Joe Tsai.

By further merging Alibaba’s e-commerce and Cainiao’s logistics services, the deal would create more competitive and efficient operation through synergy, improving customer experience. This decision comes after also Alibaba halted its initial proposal to sell off its cloud division four months ago.

DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.

E.F Team

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

You May Also Like

More From Author

+ There are no comments

Add yours