Alibaba expands in Southeast Asia with $1b deal

AFP, SHANGHAI: Chinese e-commerce giant Alibaba will acquire a controlling stake in leading Southeast Asian online shopping platform Lazada for $1.0 billion, it said Tuesday as Jack Ma's company seeks to expand outside its home market.
Alibaba's Taobao platform is estimated to have more than 90 per cent of the consumer-to-consumer market in China, while its Tmall platform is believed to command more than half of business-to-consumer transactions.
But its international commerce business only accounted for six percent of its revenue for the quarter ended in December, its latest earnings report showed.
Alibaba is investing $500 million in newly issued Lazada shares and acquiring stock from some existing holders to take a majority stake in the firm for a total of around $1 billion, according to the statement, which did not specify Alibaba's total holding.
The deal values Lazada at $1.5 billion, a shareholder -- Germany's Rocket Internet -- said in a separate statement.
"With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid
foundation for future growth in one of the most promising regions for e-commerce globally," Alibaba president Michael Evans said.

Alibaba expands in Southeast Asia with $1b deal

AFP, SHANGHAI: Chinese e-commerce giant Alibaba will acquire a controlling stake in leading Southeast Asian online shopping platform Lazada for $1.0 billion, it said Tuesday as Jack Mas company seeks to expand outside its home market. Alibabas Taobao platform is estimated to have more than 90 per cent of the consumer-to-consumer market in China, while its Tmall platform is believed to command more than half of business-to-consumer transactions. But its international commerce business only accounted for six percent of its revenue for the quarter ended in December, its latest earnings report showed. Alibaba is investing $500 million in newly issued Lazada shares and acquiring stock from some existing holders to take a majority stake in the firm for a total of around $1 billion, according to the statement, which did not specify Alibabas total holding. The deal values Lazada at $1.5 billion, a shareholder -- Germanys Rocket Internet -- said in a separate statement. With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for e-commerce globally, Alibaba president Michael Evans said.