Alibaba to Buy 38% Stake in Hotel, Restaurant Info Management Systems Firm Shiji Retail
Shiji Information, 11/02/17
Beijing-based software firm Shiji Information Technology (002153.SZ) announced today that it has signed a framework agreement with Chinese e-commerce conglomerate Alibaba Group (NYSE: BABA) that will see Alibaba acquire a minority stake in Shiji Information Technology's hotel, restaurant, and retail information management systems developer subsidiary Shiji Retail Information Technology. Under the agreement, following a restructuring of Shiji Retail, Alibaba Group subsidiary Alibaba Investment will purchase a 38% stake in Shiji Retail and become a strategic investor, with an investment of not more than USD 500 mln.
The filing states that Shiji Information Technology plans to merge four of its subsidiaries, which are mainly engaged in large-scale retail information system services, into one subsidiary, Shiji Retail. After the restructuring plan is completed, it will take on the investment from Alibaba.
In December 2015, Alibaba Group subsidiary Taobao (China) Software subscribed to a 13.07% share in Shiji Information Technology, becoming the company's second largest shareholder.
Shiji Information Technology provides information system services to Chinese hotel, restaurant, and retail industries, and is also involved in ticketing services for theme parks and scenic areas. The company has over 12,000 hotel clients, 150,000 restaurant clients, and over 300,000 small-, medium-, and large-sized retail enterprise clients.
Keywords: Shiji Retail IT services online travel M&A hotel Internet retail Alibaba Group BABA Shiji Information Technology 002153.SZ online ticketing