Yahoo! seeks to sell stake in Alibaba.com: report

Yahoo! seeks to sell stake in Alibaba.com: report
AFP
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First Published: Mon, Sep 14 2009. 06 20 PM IST
Updated: Mon, Sep 14 2009. 06 20 PM IST
Hong Kong: US internet giant Yahoo! is seeking to sell up to $150 million worth of shares in Alibaba.com, Dow Jones Newswires reported on Monday.
Yahoo! is selling its direct stake in Alibaba.com, of 57.48 million shares acquired at its initial public offering, the Dow Jones Newswires said, citing a term sheet it had seen.
The stake amounted to about 1% of shares in the Hong Kong-listed e-commerce firm.
Dow Jones Newswires said Yahoo! will sell the shares for HK$19.80-20.30 ($2.54-2.60) each, representing a discount of 4-6.4% on Alibaba.com’s closing price of 21.15 Hong Kong dollars on Monday.
Even after the discount, Yahoo! will make a respectable profit of at least 47% on the IPO price of $13.50 less than two years ago, Dow Jones Newswires said.
John Spelich, Hong Kong-based vice-president for international corporate affairs at Alibaba Group, the parent company of Alibaba.com, said that they welcomed the share sale.
“We are pleased to learn of the Yahoo! decision because having broader ownership of Alibaba.com with increased liquidity and support among institutional investors is what Alibaba.com hoped to achieve,” he said in a statement.
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First Published: Mon, Sep 14 2009. 06 20 PM IST