Alibaba.com May Be Privatized At HK$13.50 Per Share
Chinese Internet company Alibaba Group may take its Hong Kong-listed unit Alibaba.com (Hong Kong stock code 1688) private for about HK$18 billion, the Hong Kong Economic Times reports Thursday, citing an unnamed source familiar with the matter. The report cites the source as saying that Alibaba Group might offer HK$13.50 per share, equivalent to the company’s November 2007 IPO price. While the reported offer would represent a 46% premium over Alibaba.com’s pre-suspension price of HK$9.25, for now it’s difficult to guess if it might win the support of minority shareholders, given that Alibaba.com shares were punted to near HK$40 post-listing (although this is no fault on Alibaba.com’s part.) Alibaba.com shares were suspended on Feb. 9, pending clarification of speculation in relation to a transaction involving its controlling shareholder.
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