Alibaba Group Holding Limited (NYSE:BABA) aims to accomplish its initial public offering goals for its different segments while treading ahead with its artificial intelligence endeavors.
The e-commerce group’s logistics arm, as a part of a consortium, has sent a preliminary buyout offer to Chinese logistics company Best.
Also Read: Alibaba’s Latest Spinoff – What’s Going On?
The consortium proposed a purchase price of $0.144 per ordinary share
or $2.88 per American Depositary Share, SCMP reports.
The consortium plans to fund the deal primarily through Cainiao’s equity capital and cash. The consortium collectively owns about 49% of the issued and outstanding shares of Best.
Cainiao is bracing for its $1 billion Hong Kong IPO. Cainiao’s other moves this year included expanding its express delivery services.
Alibaba, which currently holds about 70% of Cainiao, will likely retain over 50% of the unit following the IPO.
Meanwhile, Alibaba rival Shein is eyeing a U.S. IPO with a valuation of up to 490 billion.
In private trades, Shein’s valuation has dropped below the $66 billion it got in a funding round in May, Bloomberg cites familiar sources.
The online retailer expects its net income to reach $2.5 billion in 2023.
Price Action: BABA shares traded lower by 0.73% at $84.74 on the last check Tuesday.
