Alibaba announced on Tuesday that it is canceling the planned Hong Kong IPO for its logistic arm Cainiao in an unexpected move, with chairman Joe Tsai saying it’s an “appropriate time to double down” on the e-commerce’s giant investment in its logistics unit. Alibaba also plans to buy Caniao stock that it does not currently hold for up to $3.75 billion, as it aims to increase its current 64% stake to full ownership. The remaining stock acquisition offer to minority investors and employees values Cainiao at $10.3 billion, Alibaba said in the announcement. “Regulation played no role” in its call-off of the IPO, Tsai told investors on a related call on Tuesday, where he emphasized that Cainiao is pivotal to the Taobao owner’s strategy of “winning in e-commerce by regaining market share and driving growth.” [Alibaba]
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