HONG KONG Dec 9 Chinese appliance maker Haier
Electronics Group Co Ltd plans to team up with
e-commerce giant Alibaba Group to further develop
its logistics business, with a total capital injection of
HK$1.86 billion ($240 million).
Alibaba will hold a 9.9 percent stake in the joint venture
with Hong Kong-listed Haier Electronics, which manufactures and
sells washing machines and water heaters.
As part of the deal, Alibaba will also subscribe for about 2
percent of Haier Electronics' enlarged share capital at
HK$18.413 per share and HK$1.32 billion worth of convertible and
exchangeable bonds, Haier said in a filing to the Hong Kong
bourse early on Monday.
The strategic investment is aimed at leveraging on Haier's
distribution capacity in third and fourth tier cities and
Alibaba's e-commerce platform Tmall.com to distribute
large-sized goods such as home appliances and furniture.
Alibaba Group's plans to revolutionise China's retail
industry, investing $16 billion in logistics and support by
2020, will open up China's vast interior and bring access to
hundreds of millions of potential new customers.
Trading in Haier's shares, which was suspended on Dec. 6,
will resume on Monday. The stock is up 64 percent this year,
outpacing a 4.8 percent rise in the benchmark Hang Seng Index