Founded in 2012, Lazada operates e-commerce platforms in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam. With only 3 percent of the region’s total retail sales conducted online, southeast Asia is expected to offer tremendous growth potential, Alibaba said. The takeover will help expand Alibaba's customer base outside its home market of China and give sellers on its platform a new area for sales.
In connection with the transaction, Alibaba entered into a put-call arrangement with certain Lazada shareholders, giving Alibaba the right to purchase, and the shareholders the right to sell collectively, their remaining stakes in Lazada at fair market value during the 12-18 months after the closing of the transaction.
Rocket Internet said it agreed to sell a 9.1 percent stake in Lazada to Alibaba for USD 197 million. This is 15 times Rocket's total capital investment in Lazada to date. The company will still hold an 8.8 percent diluted stake in Lazada after Alibaba's initial investment.
Lazada's other shareholders include Singapore investment company Temasek as well as the funds Kinnevik and Verlinvest. Kinnevik said it sold 3.8 percent in Lazada to Alibaba for USD 57 million and will retain a 3.6 percent diluted stake.
