Alibaba to Purchase Stake in Singapore Post for $249 Million.
China’s e-commerce company Alibaba Group Holding, stated on Wednesday that it shall be taking a minority stake within Singapore Post Ltd. for a total of S$312.5 million ($249 million) as part of its plants to create an international e-commerce logistics business.
The Internet company, which plans for an IPO set in motion for a later time this year, stated that it shall purchase a 10.35 percent stake in Singpost, the city state’s main postal service. The deal will make Alibaba the company’s second biggest shareholder right behind the government-controlled Singapore Telecommunication Ltd., which currently owns over 25% of SingPost.
“We see considerable strategic advantages, such as the creation of new relationships and opportunities for strategic cooperation with the Alibaba Group,” Lim Ho Kee, SingPost’s chairman said, in the joint statement, according to information provided by Reuters.
Earlier during this month, the founder of the Chinese Internet giant, Jack Ma, that’s on track to complete the biggest initial public offering within U.S. history. spoke at a meeting of up to 20 of China’s top entrepreneurs in he city of Nanning that Alibaba shall usher Chinese Society into a new and real business world.
“If Google is exploring the border of technology, then what we are doing is employing technology to explore the border of business,” Ma said after attending the annual conference of the China Entrepreneur Club. “Our contribution is bringing the Chinese society into a real business world. Although China has entered the business era, many people are still thinking in an agricultural way.”
Ma initially founded Alibaba back in 199, and the company has since then manage to grow into a giant in both the Internet and e-commerce sectors, with many different branches of businesses, these include, Taobao.com and Tmall.com, two of China’s most popular online retail platforms. The company is expected to raise $15 billion to $20 billion, potentially surpassing Facebook’s $16 billion offering in 2012.