Alibaba pays $807m to take majority stake in Cainiao
Alibaba is making an additional investment of RMB5.3bn (US$807m) to increase its ownership of Cainiao to a majority stake of 51%. The e-commerce group already owns 47% of its logistics affiliate.
When the deal completes next month, Alibaba will also get an extra seat on Cainiao’s board of directors, increasing its representation to four out of seven seats.
In a statement issued today (26 September), Alibaba also said that it intends to invest RMB100bn (US$15.2bn) over the next five years to further strengthen its global logistics network so it can “realize its mission of fulfilling orders in China within 24 hours and within 72 hours anywhere in the world”.
Alibaba said this $15.2bn investment will be used to “increase R&D in logistics data technology, as well as for development of smart warehousing, smart delivery and global logistics infrastructure”.
