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Alibaba buys controlling stake in Lazada
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Alibaba made onto the list of most valuable tech companies after raising more than $25 billion in an initial public offering on the New York Stock Exchange in September 2014. (Shutterstock/-)
C
hinese e-commerce giant Alibaba has strengthened its grip on the Southeast Asian market by acquiring a controlling stake in Lazada for US$1 billion.
Lazada is a privately owned e-commerce platform that sells a variety of products in Singapore, Indonesia, Malaysia, Thailand, the Philippines and Vietnam.
The deal includes an investment of $500 million in newly issued equity capital of Lazada and the acquisition of shares from a number of Lazada shareholders, according to channelnewsasia.com.
"With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for e-commerce globally," said Alibaba president Michael Evans.
Meanwhile, cnbc.com reported that Germany's Rocket Internet would sell a 9.1 percent stake in Lazada for $137 million in cash and be left with an 8.8 percent stake. British supermarket giant Tesco will also sell an 8.6 percent equity stake for $129 million, decreasing its stake in the company to 8.3 percent.
Alibaba was founded in 1999 by Jack Ma. The company twice attracted international venture capital investment in October 1999 and January 2000 totaling $25 million and made it onto the list of the most valuable tech companies after raising more than $25 billion in an initial public offering on the New York Stock Exchange in September 2014. (kes)
