Investor consortium pays $1.6b for 5% of Alibaba
Silver Lake, Yunfeng Capital and other investors have purchased a 5% stake in Chinese e-commerce firm Alibaba Group, worth $1.6 billion. The transaction is thought to be the tender offer made to employee shareholders and option holders, as well as certain other shareholders, in September. Digital Sky Technologies and Temasek Holdings were also confirmed as participants when the deal was announced.
Sources told Reuters that the investment closed on November 1.
The four investors have reportedly been in talks about a joint bid for Yahoo, which holds a 40% stake in Alibaba. The US internet firm emerged as a target for private equity players ever since the sacking of CEO Carol Bartz, although the outcome remains unclear. Yahoo has said it is examining all options, which resisting all bidders and selling off the Asian assets only. In addition to the Alibaba stake, Yahoo owns 35% of Yahoo Japan.
Jack Ma, founder of Alibaba and Yunfeng Capital, said in October that he was interested in buying Yahoo in its entirety and had discussed the matter with other interested parties.
Sources told AVCJ that there is no connection between Yahoo and the tender offer to Alibaba shareholders, because talks on the latter transaction pre-date Bartz's departure. It is certainly China's largest ever employee liquidity event and perhaps the largest seen in Asia as well. Silver Lake and Temasek reportedly agreed to invest $300 million and $300-400 million, respectively.
The investment values Yahoo's stake in Alibaba at $13 billion.
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