E-com­merce gi­ant in­vests an­other $1b in Lazada group

China Daily (Hong Kong) - - BUSINESS -

SHANG­HAI—Jack Ma has a big rep­u­ta­tion in China. Now, he aims to make sure Alibaba Group Hold­ing Ltd has a big pres­ence in South­east Asia.

The founder of the e-com­merce gi­ant has made no secret of his plans to turn it into a truly global business. And the pieces be­hind that dream are start­ing to fall in place.

In­deed, Alibaba il­lus­trated its am­bi­tions by in­vest­ing an­other $1 bil­lion to raise its stake in on­line mall Lazada Group SA to 83 per­cent.

This made sure Ma’s on­line be­he­moth se­cured con­trol of a fast-grow­ing com­pany at the van­guard of its South­east Asian ex­pan­sion plans.

Alibaba is buy­ing out most of the back­ers in a deal which val­ues the Singapore-based startup at $3.15 bil­lion.

The man­age­ment team and Te­masek Hold­ings Pte are the only re­main­ing in­vestors left after Rocket In­ter­net SE and In­vest­ment AB Kin­nevik sold their shares last week.

Pre­vi­ously dis­closed back­ers in­cluded su­per­mar­ket chain Tesco Plc, which is based in the United King­dom.

Last year, Alibaba took a size­able stake in Lazada from Rocket in a $1 bil­lion deal — its largest over­seas move to date.

The com­pany was started by Max­i­m­il­ian Bit­tner, who be­came chief ex­ec­u­tive of­fi­cer, in 2012. But it is now piv­otal to ex­pand­ing Alibaba’s re­tailer’s foray abroad.

Lazada’s home turf is shap­ing up to be the next bat­tle­ground for Ma’s group and main Chi­nese ri­val JD.com Inc and global gi­ant Ama­zon.com

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.