Alibaba Logistics Arm Cainiao Withdraws HK IPO Application
Alibaba Group, 3/26/24
Chinese e-commerce giant Alibaba Group (NYSE: BABA; 9988.HK) announced today that its logistics subsidiary Cainiao Smart Logistics Network Limited has withdrawn its initial public offering and listing application on the Hong Kong Stock Exchange.
At the same time, Alibaba Group plans to offer to minority shareholders of Cainiao (including employees) an opportunity to sell all of the outstanding shares of Cainiao held by them to Alibaba Group for USD 0.62 per share, representing a total consideration of up to USD 3.75 bln (the "Offer"). Cainiao shareholders may choose to accept the Offer and sell their shares to Alibaba Group for cash consideration or continue to own Cainiao shares. Alibaba Group owns approximately 63.7% of the fully-diluted equity interest in Cainiao (including vested equity interests under Cainiao's employee share ownership plan).
After completion of the Offer, Alibaba Group plans to align part of Cainiao's business to better realize strategic synergies with Taobao and Tmall Group and Alibaba International Digital Commerce Group, as well as support Cainiao to execute a long-term strategic expansion of its global logistics network.
Keywords: e-commerce Internet IPO logistics Alibaba Group Cainiao BABA 9988.HK
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