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: Monoprice takes on Amazon in trade of cheap electronics

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

Chinese tech giant Alibaba set to make a splash with US IPO

13 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

Finnish inventor rethinks design of the axe

(Phys.org) —Finnish inventor Heikki Kärnä is the man behind the Vipukirves Leveraxe, which is a precision tool for splitting firewood. He designed the tool to make the job easier and more efficient, with ...

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.

Poll: Big Bang a big question for most Americans

Few Americans question that smoking causes cancer. But they have more skepticism than confidence in global warming, the age of the Earth and evolution and have the most trouble believing a Big Bang created the universe 13.8 ...