Alibaba, China’s ecommerce giant, has paid $804m for a majority stake in Hong Kong-listed ChinaVision Media Group, continuing a string of acquisitions that total nearly $3bn over the past year.
Alibaba will buy 12.5 billion new shares of ChinaVision for 50 Hong Kong cents, or 22 percent lower than the closing price of 64 Hong Kong cents before the stock was suspended from trading on Feb. 25, according to a ChinaVision filing to Hong Kong’s stock exchange yesterday. Trading will resume today. The purchase will boost the stake of Alibaba and parties acting with it to 70.8 percent from 27 percent, according to ChinaVision. Alibaba is seeking a waiver from a Hong Kong rule requiring it to make a buyout offer for ChinaVision.
Alibaba Group net income attributable to ordinary shareholders was $792 million in the three months ended September, a 12 percent increase from the June quarter, according to a presentation dated Jan. 28 from Yahoo! Inc., which owns about 24 percent of Alibaba. Revenue rose 51 percent to $1.78 billion.
Alibaba has been valued at as much as $200 billion as it considers moving toward the biggest IPO since Facebook Inc. (FB) The company hasn’t decided on a timeframe or venue for the IPO and hasn’t hired bankers, a spokeswoman said on March 7.
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