$2.5B privatization bid approved

May 25, 2012

(AP) -- Chinese e-commerce firm Alibaba Group's $2.5 billion bid to take its Hong Kong-listed unit private was cleared Friday by minority shareholders, easing the way for CEO Jack Ma to gain more control over his company's destiny.

The approval comes less than a week after Alibaba Group said it was buying back roughly half of struggling U.S. Yahoo's stake for $7.1 billion, as the starts to extricate itself from a relationship that has grown strained over the years.

About 95 percent of minority shareholders voted at a special meeting to approve Alibaba Group Holding Ltd.'s offer to buy back the 27 percent of Ltd. that it doesn't own for 13.50 Hong Kong dollars a share. That's the same price at which the company went public in 2007.

The offer could cost up to HK$19.6 billion ($2.5 billion)., a business-to-business website, has said that going private will allow it to restructure and make long-term strategic decisions as growth slows after years of rapid expansion without pressure from shareholders worried about the depressed .

The company plans to improve the quality of its site to attract more manufacturers, wholesalers and trading companies paying to use it. The number of users has started dropping and Alibaba says reversing that decline could hurt financial results.

Hangzhou, China-based Alibaba Group also operates .com, China's version of , and TMall, which brand owners can use to sell directly to consumers. Alibaba also runs a search engine for shoppers and an online payment service.

Explore further: Yahoo! sells stake in for 150 mln dlrs


Related Stories

China grants Alibaba payment system license

May 26, 2011

(AP) -- An online payment system founded by Chinese e-commerce giant Alibaba Group was granted a government license, the company said Thursday, following an ownership change that rattled investors in partner Yahoo Inc.

China's Alibaba splits online shopping unit Taobao

June 16, 2011

China's largest e-commerce company Alibaba Group announced Thursday it has split its consumer online shopping platform Taobao into three firms to adapt to an increasingly competitive landscape.

China e-commerce firm Alibaba in privatization bid

February 21, 2012

(AP) --'s parent company wants to take the Chinese e-commerce company private for $2.5 billion, the firms said Tuesday, part of a shift in business strategy that also includes plans to buy back a stake from Yahoo ... shares surge on privatization bid

February 22, 2012

(AP) -- Shares of rocketed on Wednesday after the Chinese e-commerce site said its parent company made a $2.5 billion privatization bid as part of a shift in business strategy that also includes plans to buy ...

China fund may help Alibaba in Yahoo! bid: report

May 25, 2012

China Investment Corporation is in advanced talks to add up to $2 billion to the Alibaba Internet Group's efforts to buy back a stake from struggling Internet pioneer Yahoo!, the New York Times reported.

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...

Glider pilots aim for the stratosphere

November 20, 2015

Talk about serendipity. Einar Enevoldson was strolling past a scientist's office in 1991 when he noticed a freshly printed image tacked to the wall. He was thunderstruck; it showed faint particles in the sky that proved something ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.