Alibaba to Take Majority Stake in Cainiao Network
September 25 2017 - 11:59PM
Business Wire
An additional investment of RMB5.3 billion
(US$807 million) will increase Alibaba’s stake to 51%
Alibaba also announces intention to invest an
additional RMB100 billion (US$15.2 billion) over the next five
years to expand its logistics network
Alibaba Group Holding Limited (NYSE: BABA, “Alibaba”) today
announced that as a further step to implement its New Retail
strategy, the company has agreed to make an additional investment
of RMB5.3 billion (US$807 million) to increase its ownership of
Cainiao Smart Logistics Network Limited (“Cainiao”), the logistics
affiliate of Alibaba, to a majority stake of 51%. Alibaba also
announced its intention to invest RMB100 billion (US$15.2 billion)
over the next five years to further strengthen its global logistics
network that aims to realize its mission of fulfilling orders in
China within 24 hours and within 72 hours anywhere in the world.
These investments are expected to enhance the overall logistics
experience for consumers and merchants across the Alibaba
ecosystem, as well as to enable greater efficiencies and lower
costs in China’s logistics sector.
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Upon completion of the transaction, Alibaba’s stake in Cainiao
will increase from 47% to 51%, and Alibaba will gain one additional
new seat on Cainiao’s board of directors, increasing its board
representation to four out of seven seats.
The additional investment of RMB100 billion (US$15.2 billion)
over the next five years will be used to increase R&D in
logistics data technology, as well as for development of smart
warehousing, smart delivery and global logistics infrastructure,
all of which are core to building the global logistics network of
the future.
“Our goal with this investment is to provide comprehensive,
first-class experience for consumers globally,” said Daniel Zhang,
CEO of Alibaba Group. “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. We will
also continue to deepen our collaboration with various logistics
partners to achieve this goal.”
This transaction is expected to be completed in October 2017,
subject to satisfaction of customary closing conditions. Following
the completion of the transaction, financial results of Cainiao
will be consolidated under Alibaba Group and reported as part of
the core commerce business segment.
Credit Suisse acted as financial advisor to Alibaba and Morgan
Stanley acted as financial advisor to Cainiao.
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business
anywhere. The company aims to build the future infrastructure of
commerce. It envisions that its customers will meet, work and live
at Alibaba, and that it will be a company that lasts at least 102
years.
About Cainiao Network
Cainiao Network is dedicated to meeting the current and future
logistics demands of China's online and mobile commerce sector. It
operates a logistics data platform that leverages the capacity and
capabilities of logistics partners to fulfill transactions between
merchants and consumers at a large scale. It also uses data
insights and technology to improve efficiency across the logistics
value chain. Cainiao Network is an affiliate of Alibaba Group.
Safe Harbor Statements
This announcement contains forward-looking statements. These
statements are made under the “safe harbor” provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as
“will,” “expects,” “anticipates,” “future,” “intends,” “plans,”
“believes,” “estimates,” “potential,” “continue,” “ongoing,”
“goal”, “targets,” “guidance”, “commits” and similar statements.
Among other things, statements that are not historical facts,
including statements about Alibaba’s investment plans or the
completion of the transaction, are or contain forward-looking
statements. Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statement, including but not limited to Alibaba’s investment plans
and the possibility that the various closing conditions for the
transaction may not be satisfied or waived. All information
contained in this announcement is as of the date of this
announcement and are based on assumptions that Alibaba believes to
be reasonable as of this date. You should not rely upon these
forward-looking statements as predictions of future events. Alibaba
does not undertake any obligation to update any forward-looking
statement, except as required under applicable law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170925006575/en/
AsiaAlibaba GroupCathy Yan, +852 5960
8885cathy.yan@alibaba-inc.comorU.S.Alibaba GroupRobert H.
Christie, +1 917-860-9410bob.christie@alibaba-inc.com
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