GO
Loading...

Alibaba Group May Take Unit Private for $2.3 Billion

Getty Images

Chinese e-commerce group Alibaba may take its Hong Kong-listed unit Alibaba.com private at about the price of its 2007 initial public offering for about HK$18 billion ($2.3 billion), the Hong Kong Economic Times reported on Thursday, citing sources.

The newspaper said Alibaba might offer HK$13.50 each for all outstanding shares it did not already own in the unit , equivalent to the November 2007 IPO price.

Alibaba officials declined to comment.

The offer would represent a 46 percent premium over the last closing price of the Hong Kong-listed unit, the paper said. Alibaba Group owns 73 percent of the listed unit.

Alibaba plans to take its Hong Kong-listed unit private, two sources familiar with the matter said earlier this month, as part of a complex deal that would strengthen founder Jack Ma's control and give key stakeholder Yahoo cash and a direct stake in one of Alibaba's operating businesses.

Talks between Yahoo and Alibaba over the U.S. Internet giant's Asian assets have hit an impasse, throwing their plans for a $17 billion tax-free asset swap into question, according to sources briefed on the situation this week.

Contact M&A

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    To learn more about how we use your information,
    please read our Privacy Policy.
    › Learn More