Alibaba.com says 83.8% of shareholders back privatisation
Alibaba.com Ltd, Hong Kong-listed unit of China's Alibaba Group, said today that 83.8% of its shareholders have approved a $2.5 billion buyout offer by the parent to take the company private, in a decision that was widely expected.business Updated: May 25, 2012 09:10 IST
Alibaba.com Ltd, Hong Kong-listed unit of China's Alibaba Group, said on Friday that 83.8% of its shareholders have approved a $2.5 billion buyout offer by the parent to take the company private, in a decision that was widely expected.
Alibaba Group, in which Yahoo Inc owns a 40% stake, is offering investors HK$13.50 ($1.74) per share in cash to take Alibaba.com private, the same price as the company's initial public offering in 2007.
Shares of Alibaba.com, which were suspended on Friday, closed on Thursday at HK$13.42.
Jack Ma, who founded an e-commerce empire from a single website, said the move to take Alibaba.com private was to ensure the company could take long-term decisions that would benefit customers.
For the past few quarters, Alibaba.com's results have been weighed down by economic uncertainty and declining subscriber numbers as the company moved towards a value-added-services business model.
Earlier this week, Yahoo and Alibaba reached an agreement for Yahoo to sell as much as half of its 40% stake in Alibaba Group for $7.1 billion, ending years of fractious talks over how to extract value from its most prized asset.
($1 = 7.7633 Hong Kong dollars)