SINGAPORE May 28 A unit of Chinese e-commerce
giant Alibaba Group Holdings Ltd IPO-ALIB.N will buy a
minority stake in Singapore Post Ltd for S$312.5
million ($249 million) to help set up an international
e-commerce logistics business.
Alibaba will buy a 10.35 percent stake in Singapore Post
(SingPost) in the enlarged capital of the firm, the companies
said in a joint statement. After the deal is complete, Alibaba
will become the second biggest shareholder in SingPost after
Singapore Telecommunications Ltd, whose stake will
fall to about 23 percent from nearly 26 percent.
"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.
SingPost has been boosting its e-commerce revenue to offset
a weak postal business, helping drive up its shares by about 18
percent so far this year.
($1 = 1.2563 Singapore Dollars)
(Reporting by Anshuman Daga; Editing by Miral Fahmy)