Chinese e-commerce giant Alibaba 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 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 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’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.