Singapore state funds have purchased $1 billion worth of shares in Chinese e-commerce firm Alibaba, as part of an $8.9 billion sale by SoftBank of Japan, the largest shareholder in Alibaba.
Singaporean sovereign wealth fund GIC and state investor Temasek Holdings both bought $500 million in the Chinese company at $74 each through subsidiaries.
GIC and Temasek confirmed the transactions but have so far declined to comment on the matter.
Alibaba has purchased $2 billion in its own stock for the same price, which should add to earnings, said Executive Vice Chairman Joe Tsai to analysts on a call.
Members of the Alibaba Partnership of senior executives and founders bought another $400 million at the $74 per share price, he also added.
Softbank also offered $5.5 billion in debt securities, which may be exchanged for stock in Alibaba in three years. SoftBank said this week that it will sell at least $7.9 billion of shares in Alibaba to cut debt at the Japanese firm, although it will still be the largest shareholder in the e-commerce giant after the sale.
SOURCE: Reuters.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.
