Alibaba buys minority stake in SingPost
A UNIT of Chinese e-commerce giant Alibaba Group Holdings will buy a minority stake in Singapore Post for $312.5 million to help set up an international e-commerce logistics business.
Alibaba will buy a 10.35 per cent stake in SingPost in the enlarged capital of the firm, the companies said in a joint statement.
The $312.5 million investment comes alongside a memorandum of understanding between the two partners that will allow them to discuss and negotiate a joint venture related to the business of international e-commerce logistics, SingPost said in a statement.
When the deal is complete, Alibaba will become the second-biggest shareholder in SingPost, after SingTel, whose stake will fall to about 23 per cent, from nearly 26 per cent.
"We see considerable strategic advantages, such as the creation of new relationships and opportunities for strategic cooperation with the Alibaba Group," Lim Ho Kee, SingPost's chairman, said in the joint statement.
Alibaba was the largest online and mobile commerce company in the world in terms of gross merchandise volume last year.
SingPost has been boosting its e-commerce revenue to offset a weak postal business, helping drive up its shares by about 18 per cent so far this year.