Menu
Alibaba invests $692 million for a presence in physical retail

Alibaba invests $692 million for a presence in physical retail

Alibaba said it is acquiring a stake in department store operator Intime Retail

Alibaba Group is investing about $US692 million in retail company, Intime Retail, with the aim of setting up a joint venture that aims to provide linkages between its online and physical retail businesses in China.

The Chinese e-commerce giant will invest $US214 million in shares of Intime, besides acquiring $US478 million in convertible bonds, according to a filing by Intime to the Hong Kong stock exchange.

The equity investment will give Alibaba a 9.9 per cent share of the enhanced share capital of the company besides giving it the option to acquire a larger stake by converting its bonds into up to 18 percent of the share capital after conversion.

The investment is the latest by Alibaba, which earlier this month invested $US215 million to acquire a minority stake and a seat in the board of US mobile messaging app developer Tango. Alibaba has previously invested in expanding its presence in the US including through a $US200 million investment in Amazon.com competitor ShopRunner and Quixey, a search engine for apps.

In China, Alibaba also bought a stake last year in a large social networking site Sina Weibo and is working to acquire online mapping provider AutoNavi for $US1.1 billion.

The aim of the investment in Intime is to harness the latest Internet technologies and develop an online-to-offline, omni-channel business so as to create a highly convenient and impactful shopping experience, the companies said.

Alibaba will hold a 80 per cent stake in the joint venture with the balance held by Intime.

The investment comes ahead of Alibaba's plan for an initial public offering in the US.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsinternetbusiness issuese-commercealibabaIntime Retail

Brand Post

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments