Alibaba invests USD 1 bln to raise stake in Lazada

News Broadband South-Eastern Asia 28 JUN 2017
Alibaba invests USD 1 bln to raise stake in Lazada
Alibaba Group is investing another USD 1 billion in the southeast Asia e-commerce platform Lazada in order to increase its stake to 83 percent from 51 percent. The deal gives Lazada valuation of USD 3.15 billion, much higher than when Alibaba first bought its controlling stake for USD 1 billion in April 2016.

Alibaba is acquiring the additional shares in the company from existing Lazada shareholders. Rocket Internet announced it's selling its 8.8 percent stake in Lazada to Alibaba for USD 276 million. This was an option agreed in April 2016 when it first sold 9.1 percent in Lazada to Alibaba. Rocket Internet's original investment in Lazada was EUR 18 million. 

Alibaba said the new investment shows its confidence in Lazada to expand the company's footprint into southeast Asia. With only 3 percent of the region’s total retail sales conducted online, southeast Asia is expected to offer tremendous growth potential, Alibaba said. 

Categories:

Internet

Companies:

Alibaba,  Lazada,  Rocket Internet

Regions:

South-Eastern Asia

Tags:

M&A buyouts & divestments

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