Alibaba Group to take Alibaba.com private for $2.5 billion
22 Feb 2012
Chinaq's Alibaba Group Holding Ltd, controlled by billionaire Jack Ma, yesterday offered HK$19.6 billion ($2.5 billion) to privatise its Hong Kong-listed unit Alibaba.com Ltd, China's biggest e-commerce site.
Alibaba Group is offering HK$13.50 a share for the 27-per cent stake it does not already own in Alibaba.com, a premium of 46 per cent to its last traded price of on HK$9.25 on 8 February.
Share price of Alibaba.com had slid by 44 per cent in the 12 months to 9 February when trading was halted pending news about a deal involving its parent company.
"Taking Alibaba.com private will allow our company to make long-term decisions that are in the best interest of our customers and that are also free from the pressures that come from having a publicly listed company," said Jack Ma, Alibaba Group founder and chairman.
"With this offer, we provide our shareholders a chance to realise their investment now at an attractive cash premium rather than waiting indefinitely during this period of transition," he added.
Alibaba.com posted a net profit of 1.71 billion yuan ($271.5 million) in 2011, up 16.6 per cent over the previous year.
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