AlibabaAlibaba buys buys 32%32% stake stake in in gro­cery­gro­cery chain chain San­jiang

Ac­qui­si­tion of San­jiang Shop­ping Club is part of e-com­merce gi­ant’s plan to re­vamp O2O model in the coun­try Ac­qui­si­tion is part of e-com­merce gi­ant’s plan to re­vamp O2O model in the coun­try

China Daily (USA) - - BUSINESS - By BLOOMBERG By BLOOMBERG

Alibaba Group Hold­ing Ltd will spend more than 2 bil­lion yuan ($290 mil­lion) buy­ing about one-third of San­jiang Shop­ping Club Co, pick­ing up a slice of a regional Chi­nese dis­count su­per­mar­ket chain, which has Alibaba more Groupthan 1 Hold­ing mil­lion Ltd mem­bers.will spend more than 2 bil­lion Shares yuanof San­jiang($290 mil­lion) surged buy­ingby its daily about 10 per­cent one-third lim­itof San­jian­gon Mon­day, Shop­ping­giv­ing the Club Ningbo-basedCo, pick­ing up com­pa­nya slice of a a regional mar­ket value Chi­ne­seof about dis­count$830 mil­lion.su­per­mar­ket China’s chain, largest which e-com­merce­has more than com­pany1 mil­lion will mem­bers. hold about 32 per­cent of San­jiang, Share­sit said of in San­jianga fil­ing. surgedIt will by buy its 1.52 daily bil­lion10 per­centyuan of limit new on shares, Mon­day, 438.6 mil­lion giv­ing yuan­the Ningbo-basedof stock from ex­ist­ing com­pany hold­ers,a mar­ket and value 188 of mil­lion about $830 yuan mil­lion.of con­vert­ible bonds via a pri­vate China’s sale. largestIf con­verted,e-com­merce the bonds com­pany would will ac­coun­thold about­for 3 per­cent32 per­centof equity.of San­jiang, it said The in deala fil­ing. marks It Alibaba’swill buy 1.52 lat­est bil­lion ac­qui­si­tion yuan of of brick­sand-mor­tarnew shares, 438.6 re­tail, mil­lion as yuanit triesof stockto re­vamp from tra­di­tionalex­ist­ing hold­ers, off­line and and 188 on­line mil­lion mod­els. yuan Bil­lion­aireof con­vert­ible co-founder­bonds via Jacka pri­vate Ma’s sale. goal If is con­verted,to re­place the dis­trib­u­tors­bonds would and ac­count mid­dle­men­for 3 per­cent and of let equity. stores buy di­rectly from sup­pli­er­sThe deal based marks Alibaba’son re­al­time lat­est de­mand ac­qui­si­tion and of brick­sand-mor­tar in­ven­tory. San­jiang, re­tail,a lo­calas it tries take to on re­vamp Sam’s tra­di­tion­alClub, sells off­line gro­ceries and on­lin­eat dis­count­ed­mod­els. Bil­lion­aire prices and co-founder­op­er­ates aboutJack Ma’s 160 goal stores is scat­teredto re­place across dis­tribu- the

num­ber of stores op­er­ated by num­ber San­jiang of Shop­ping­stores Club op­er­at­edCo in theby San­jiang pros­per­ous Shop­pingeast­ern provinceClub Co of in the Zhe­jiang pros­per­ous east­ern prov­ince of Zhe­jiang amount spent by Alibaba on San­jiang ac­qui­si­tion amount spent by Alibaba on San­jiang ac­qui­si­tion

pros­per­ous east­ern prov­ince of Zhe­jiang. Club, “San­jiangsells gro­ceries shop­pin­gat dis­counted has an ex­ten­sive prices off­line and net­work­op­er­ates and ex­pe­ri­ence­about 160in run­ning­stores scat­tere­dretail stores,” across the com­pa­ni­es­the pros­per­ous said in east­ern­the fil­ing. provinceThe twoof Zhe­jiang. com­pa­nies will work in pro­cure­ment “San­jiang and shop­ping lo­gis­tics, has an­dan ex­ten­sive in­te­grate busi­nes­sof­fline lines. net­work and Alibaba ex­pe­ri­ence does in not run­ning plan re­tai­lon any stores,” ad­di­tion­althe com­pa­nies stake said pur­chas­esin the in fil­ing. the The next two 12 com­pa­nies­months, San­jiang­will work saidin pro­cure­ment in a stock ex­change­and lo­gis­tics, fil­ing.and in­te­grateThe con­vert­ible busi­ness bond­slines. can be Alibaba con­verted does to not San­jiang­plan on any shares ad­di­tion­al­six months stake af­ter­pur­chases is­suance.in the next 12 months, San­jiang Alibaba said has in in­vesteda stock in ex­change phys­i­cal fil­ing. re­tail The— con­vert­ible in­clud­ing bondsin Sun­ing­can be Com­merce­con­verted to Group San­jiangCo and In­time shares Re­tail­six month­sGroup Co af­ter — is­suance.to flesh out its on­line Alibaba shop­ping­has in­vested of­fer­ings,in phys­icalopen up new re­tail sales— in­clud­ing chan­nels in and Sun­ing im­prove Com­mer­ceits lo­gis­tic­sGroup Co net­work.and In­time Re­tail Group

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.