Alibaba-backed Firms Acquire 10% Stake in Department Store New Huadu
New Huadu Supercenter, 9/26/17
Fuzhou-based mall and department store operator New Huadu Supercenter (002264.SZ) announced today that its controlling stockholder New Huadu Industrial Group will sell a 10% equity stake to Alibaba (Chengdu) Software Technology and affiliate Hangzhou Hanyun Xinling Equity Investment, both of which are companies under the umbrella of Chinese e-commerce conglomerate Alibaba Group (NYSE: BABA). After the transaction, each entity will hold a 5% stake of New Huadu Supercenter and will collectively become the second largest stakeholder.
According to New Huadu's equity transfer report, the current transaction sets the price of shares at RMB 8.00 per share to be paid in cash for a total consideration of RMB 547 mln for the 10% stake.
New Huadu Supercenter will also partner with Hangzhou-based Alibaba Zetai Information Technology to invest RMB 100 mln each for a 50% stake in a newly formed JV Fujian Xinhe Network Technology, which will combine each company's resources to invest in the creation and operation of new retail stores in Fujian.
Alibaba Zetai is wholly owned by Alibaba Group via Alibaba (China) Network Technology.
Keywords: New Huadu Supercenter 002264.SZ Alibaba Zetai Xinhe Network Technology Hanyun Xinling e-commerce Internet retail Alibaba (China) Network Technology JV New Huadu Industrial Alibaba Group BABA M&A
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