Chinese e-commerce giant Alibaba (NYSE: BABA) said on Tuesday it invested an additional 5.3 billion yuan, or $807 million, to increase its stake in logistics firm Cainiao Smart Logistics to 51%.
Prior to the deal, Alibaba held 47% of Cainiao, the company said in a press release. The deal would give Alibaba an additional seat on Cainiao's board, raising its total to four out of seven seats.
The deal is expected to be completed in October.
Alibaba added that it expects to invest 100 billion yuan, or $15.2 billion, over the next five years to boost its global logistics network. The company said it wants to fulfill orders on the mainland within 24 hours and within 72 hours globally.
Credit Suisse acted as Alibaba's financial adviser and Morgan Stanley advised Cainiao, the statement said.
Said CEO Daniel Zhang, “Our goal with this investment is to provide comprehensive, first-class experience for consumers globally.
“Our commitment to Cainiao and additional investment in logistics demonstrate Alibaba’s commitment to building the most-efficient logistic network in China and around the world. By enhancing the logistics capabilities within the Alibaba ecosystem and extending our investment in this sector, we are further enabling our New Retail strategy to bring online and offline retail into one seamless experience for shoppers.
Zheng concluded, “We will also continue to deepen our collaboration with various logistics partners to achieve this goal.”
Shares in Alibaba reached the noon hour point of Tuesday’s trading day down $1.62, or nearly 1%, to $167.97, within a 52-week trading range of $86.01 to $180.87.
Tech Insider
