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Alibaba hikes stake in SingPost with $187.1m investment
It will now have a 14.5% stake.
E-commerce giant Alibaba will hike its stake in Singapore Post with a $187.1m (US$138.6m) investment.
In a joint release today, the two companies said that Alibaba Group will purchase 107,553,907 new ordinary SingPost shares. Upon completion, Alibaba’s stake will increase from the current 10.23% to 14.51%.
Alibaba will also inject $92m (US$67.85m) into Quantium Solutions International, which is currently a subsidiary of SingPost. QSI will reorganize its business and become the joint venture vehicle of SingPost and Alibaba, which will allow QSI to ramp up its development of e-commerce logistics infrastructure and services.
SingPost and Alibaba have also entered into a joint strategic business development framework to further improve efficiency and integration of e-commerce logistics solutions, and will form a joint Steering Committee for this initiative.
“Over the past year, Alibaba and SingPost have worked closely to explore cross border e-commerce opportunities and created a series of customized logistics solutions in various markets. This additional investment into SingPost and establishment of a joint venture signify our commitment in expanding our global logistics footprint, which in turn will help Chinese businesses sell, and global brands deliver more easily around the world,” said Daniel Zhang, Chief Executive Officer of Alibaba Group.
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