Thursday, 29 June 2017
KUALA LUMPUR: Alibaba Group Holding Limited will invest approximately US$1 billion to increase its stake to approximately 83% in Lazada Group, the leading e-commerce platform in Southeast Asia.
In a statement today, Alibaba said the transaction demonstrated the continued success of Lazada’s business and Alibaba’s confidence in the growth potential of Southeast Asian markets and its commitment to the region as part of its global strategy.
Alibaba, with some 51% stake in Lazada at present, wouldl purchase the shares at an implied valuation of US$3.15 billion for the company, reflecting a significant increase in Lazada’s value since Alibaba first acquired its majority stake in April 2016. The transaction would increase Alibaba’s total investment in Lazada to over US$2 billion. Lazada would continue to operate under the same brand following this investment.
Alibaba’s investment in and collaboration with Lazada have been an important part in expanding Alibaba’s global footprint, providing it unrivaled access to consumers in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Lazada and Alibaba, in the past 12 months, have worked on a number of initiatives to advance e-commerce in Southeast Asia to lower barriers and facilitate borderless commerce.
These initiatives included the establishment of an e-fulfillment center in Malaysia, forming part of Alibaba’s Electronic World Trading Platform strategy, advancing “Thailand 4.0” and launching Taobao Collection in Singapore and Malaysia to allow local customers to shop for high quality products from China.
“As a market leader, Lazada has demonstrated ability to execute and lead the region with the best consumer experience in Southeast Asia while growing a strong ecosystem that supports small businesses going online,” said Alibaba Group Chief Operating Officer Daniel Zhang.
Source by: Internet