Industry

Alibaba Plans to Buy 10% Stake in Chinese Courier Yunda

Mar 31, 2020, 16:42pm2020/03/31 16:44:44 Isabel Wang

Chinese e-commerce giant Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> Group Holding Ltd. plans to buy at least a 10% stake in Chinese shipping company Yunda Holding, two people familiar with the matter told Reuters.

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Reuters reported on Tuesday morning that Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> seeks to acquire shares from Yunda’s controlling shareholders, Nie Tengyun and Chen Liying. The founding couple own 52.19% of Yunda from their wholly-owned company Shanghai Luojiesi Investment Management.

Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder /> declined to comment on “market rumors” in response to the China Securities Journal’s request for comment.

Based on Yunda’s closing price on Monday, the stake would be worth at least $790 million. Yunda Holding soared 10% to 30.81 yuan per share in Shenzhen after the Reuters’ report.

The move would mark Alibaba<img decoding="async" class="trade-card__loading" layout="fixed" height="50" width="50" src="https://assets.pandaily.com/uploads/2021/12/loading.png" placeholder />’s fifth attempt to gain a bigger share in China’s fast-growing express delivery industry, after its investment in Best Inc., ZTO Express, YTO Express and STO Express.