Alibaba to acquire a 10% stake in Chinese Courier Yunda
At the current market price, the stake would be worth at least $790 million
Stocks impacted: Alibaba Group Holding Ltd (BABA), Yunda Holding Co. (002120)
China's e-commerce giant plans to acquire a stake of at least 10% in one of the China’s largest couriers, Yunda Holding Co. At the current market price, the stake would be worth at least $790 million. As a reminder, according to Chinese regulations, a stake of over 5% in a domestically listed company can be sold at a discount of as much as 10% to the firm's share price on the last trading day prior to a deal. It is also reported that Alibaba has already bought a small stake in Yunda which is below threshold for disclosure. Shanghai-based Yunda went public through a backdoor listing in 2016. Last year, Alibaba took a 14.65% stake in another large express delivery firm, STO Express Co Ltd. Earlier, the giant acquired minority stakes in YTO Express Group Co Ltd, Best Inc and ZTO Express (Cayman) Inc. Alibaba stocks closed 1.42% higher on Tuesday.
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