Alibaba Group Offers $2.5 Billion to Take Listed Unit Private

Alibaba Group Holding Ltd., in talks to buy back a stake owned by Yahoo! Inc., offered as much as HK$19.6 billion ($2.5 billion) to privatize a listed unit and gain full control of China’s biggest corporate e-commerce site.

The company bid HK$13.50 a share for the 27 percent of Alibaba.com Ltd. it doesn’t already own, according to a Hong Kong Stock Exchange statement yesterday. That’s 46 percent more than the last closing price.

Chairman Jack Ma seeks to buy out minority Alibaba.com shareholders four years after a $1.7 billion initial public offering as the unit warned of worsening earnings tied to a change in strategy. The buyout may facilitate Ma’s efforts to acquire Yahoo’s holdings in Alibaba Group, said Dundas Deng, an analyst at Guotai Junan Securities.

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- Posted: 2012-02-21 12:43:41

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