Temasek, GIC buy US$1bil in Alibaba stock in SoftBank sale


People walk past a retail shop of the SoftBank telecommunications company in Tokyo, Japan, May 10, 2016. REUTERS/Thomas Peter/File Photo

Singapore state funds bought US$1bil (RM4.15bil) of shares in Chinese e-commerce company Alibaba Group Holding Ltd as part of an US$8.9bil (RM37bil) sale by Japan's SoftBank Group Corp, Alibaba's biggest shareholder, the company said. 

Singapore sovereign wealth fund GIC Pte Ltd, and state investor Temasek Holdings each purchased US$500mil (RM2.07bil) of Alibaba shares at US$74 (RM307.77) apiece through subsidiaries, Alibaba said, offering details of the SoftBank sale announced on May 31. 

GIC and Temasek confirmed the transactions but declined to provide further comment. Temasek is an existing investor in Alibaba. 

Alibaba purchased US$2bil (RM8.31bil) of its own stock at the same price, in a move which would add to earnings, executive vice-chairman Joe Tsai told analysts on a call. 

Members of the Alibaba Partnership of senior executives and founders purchased another US$400mil (RM1.66bil), as expected, at the US$74 (RM307.77) per share price, he added. 

SoftBank also offered US$5.5bil (RM22.86bil) in debt securities, which can be exchanged for Alibaba stock in three years, Tsai said. 

SoftBank Group said on May 31 it would sell at least US$7.9bil (RM32.85bil) of shares in Alibaba to cut the Japanese company's debt. It said it would remain Alibaba's largest shareholder after the sale. 

Shares of Alibaba fell about 6.5% to close at US$76.69 (RM318.96). — Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Tech News

New Indian social media rules could threaten free expression, critics warn
Bitcoin extends retreat from record high to hit lowest in 20 days
New Zealand to use AI-enabled drones to track endangered dolphins
Judge in Google case disturbed that even ‘incognito’ users are tracked
McDonald's will test plant-based food, following Beyond Meat partnership
Pokemon's appeal continues to endure, even during the pandemic
That cheap 2TB USB stick is probably fake - here’s how you know
In ‘Dadish 2’ you’re a radish dad looking for your lost babies
Outgrowing your smartphone camera? Consider a system camera
Used electric car batteries are heading to factories and farms

Stories You'll Enjoy


Vouchers