Shareholders vote to take China's Alibaba unit private

May 25, 2012
Minority shareholders of Alibaba.com on Friday voted in favour of a proposal by its parent Alibaba Group Holding to take the Hong Kong-listed online trading unit private, the company said. The vast majority of independent shareholders voting in person or by proxy backed the delisting, China's top e-commerce player said in a statement.

Minority shareholders of Alibaba.com on Friday voted in favour of a proposal by its parent Alibaba Group Holding to take the Hong Kong-listed online trading unit private, the company said.

The vast majority of independent shareholders voting in person or by proxy backed the delisting, China's top e-commerce player said in a statement.

"Subject to the scheme becoming effective, Alibaba.com's scheme shareholders will receive a cancellation price of HK$13.50 per share in cash," Alibaba Group said.

The company suspended its shares from trading Friday, at the previous closing price of HK$13.42 each.

According to the proposal, Alibaba Group will buy the 27 percent stake it does not already own in Alibaba.com.

"The price is too low," Liu Nanchang, a 67-year old retired engineer, told Newswires. Liu, who bought the shares last year at around HK$8 each, voted to keep the company public.

The privatisation of the Hong Kong-listed flagship company is part of preparations for the China-based group's expected .

After more than a year of tough negotiations, Yahoo! this month said it had agreed to sell its stake in the Alibaba Group back to the company for at least $7.1 billion.

Alibaba Group includes Alibaba.com and , China's largest online marketplace for consumers with more than 800 million product listings and 370 million registered users.

Potential valuations of the group based on equity sales to finance the Yahoo could be between $35 billion and $50 billion.

Alibaba.com's soared more than 40 percent in February after its parent company announced plans to take the firm private for $2.3 billion.

The offer price matches the price at which the unit was listed in 2007.

Group chairman Jack Ma has said going private will allow the company to "make long-term decisions ... free from the pressures that come from having a publicly listed company".

.com posted a net profit of 1.71 billion yuan ($271.5 million) in 2011, up 16.6 percent over the previous year, but with weakness in the fourth quarter.

The firm said its fourth-quarter fell 6.0 percent from a year earlier, citing cautiousness due to a weak global environment.

Explore further: Amid scrutiny, Uber vows bigger focus on safety

add to favorites email to friend print save as pdf

Related Stories

China e-commerce firm Alibaba in privatization bid

Feb 21, 2012

(AP) -- Alibaba.com'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 ...

Alibaba.com $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 ...

Alibaba.com shares surge on privatization bid

Feb 22, 2012

(AP) -- Shares of Alibaba.com 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.

Jack Ma: English teacher turned Internet billionaire

May 21, 2012

After being knocked back by American venture capitalists in 1999, Jack Ma -- a cash-strapped entrepreneur -- convinced friends to give him $60,000 to start Chinese online retailer Alibaba.com.

Recommended for you

Underfire Uber ramps up rider safety

11 hours ago

Uber is ramping up driver background checks and other security measures worldwide after the smartphone-focused car-sharing service was banned in New Delhi following the alleged rape of a passenger.

Sony cancels NKorea parody film release after threats

12 hours ago

Hollywood studio Sony Pictures on Wednesday abruptly canceled the December 25 release date of "The Interview," a parody film which has angered North Korea and triggered chilling threats from hackers.

Sprint accused of billing for unwanted services

16 hours ago

(AP)—Federal regulators are accusing Sprint Corp. of illegally billing its wireless customers hundreds of millions of dollars in charges for text message alerts and other services that they didn't order.

User comments : 0

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.