Alibaba Group to buy 10% stake in Singapore Post
The two sides announced that SingPost and Alibaba Investment Ltd, a wholly owned subsidiary of Alibaba Group, have entered into an investment agreement under which Alibaba Investment will invest S$312.5 million ($249 million) to purchase 30 million existing ordinary shares and 190.096 million new ordinary shares, to allow Alibaba to take a 10.35 percent stake in SingPost upon completion.
Alibaba and the publicly traded SingPost also inked a memorandum of understanding to build an "international e-commerce logistics platform", aiming to seize an e-commerce opportunity in Southeast Asia's potentially huge market.
According to Alibaba's statement, the collaboration will give the Hangzhou-based e-commerce giant access to SingPost's international logistics capabilities, infrastructure and delivery networks.
Alibaba Group Chief Operating Officer Daniel Zhang said in a statement that the deal will allow Alibaba to "leverage SingPost's strong delivery networks and end-to-end e-commerce logistics solutions to facilitate international e-commerce." ■