Alibaba set to invest $150 million in Best Inc.
Chinese logistics provider Best Inc. has redrawn the scope of its IPO, cutting the deal nearly in half as it reduced the price range of shares on offer and existing shareholders decided not to sell. One company that’s hoping to pick up a sizeable portion of what’s on offer is Alibaba. The Chinese Ecommerce giant is planning to invest about $150 million according to people with knowledge of the matter – that’s nearly a third of the $495 million that Best Inc. is seeking in total.
Alibaba’s share price has risen by 105% in 2017 year to date
SOURCE: Yahoo Finance
The appeal of ownership in a logistics specialist is obvious from the perspective of Alibaba, which is gearing up to take even more market share away from domestic and international rivals.
Jack Ma, Alibaba’s billionaire founder and CEO was in fact already Best’s biggest shareholder, with a 23.4% stake in the company, and Cainiao Smart Logistics Network Ltd., a logistics partner to Alibaba, owns a further 5.6%. Alibaba-owned platforms like Taobao and Tmall accounted for around 69% of Best’s express deliveries in the first half of the year.
Best and Alibaba have declined to comment on the matter, yet a filing makes it explicit that Best is not obligated to sell any shares to Alibaba.
Dominion holds Alibaba in its Global Trends Ecommerce Fund.
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