HONG KONG (Nikkei Markets) -- China’s Alibaba Group Holding on Friday said it plans to increase its stake in logistics firm Cainiao Smart Logistics Network by 12% with an additional investment of 23.3 billion yuan ($3.33 billion).
Alibaba will increase its stake from 51% to 63% by subscribing for newly issued Cainiao shares in its latest financing round and by purchasing certain equity interest from an existing Cainiao shareholder, the internet services major said in a statement.
The additional investment from Alibaba Group is a “vote of confidence” in Cainiao, the statement read. Cainiao works to enhance service and user experience for merchants and consumers through superior technology and digital solutions, both within China and around the world, Alibaba’s group executive chairman and chief executive officer Daniel Zhang said.
“We are committed to supporting its ongoing development, to realizing greater synergies throughout the entire Alibaba economy and accelerating digitization of the logistics industry,” he added.
-- Ahana Sen Gupta