Alibaba introduced on Tuesday that it’s canceling the deliberate Hong Kong IPO for its logistic arm Cainiao in an surprising advance, with chairman Joe Tsai pronouncing it’s an “appropriate time to double down” at the e-commerce’s gigantic funding in its logistics unit. Alibaba additionally plans to shop for Caniao hold that it does now not recently conserve for as much as $3.75 billion, because it goals to extend its stream 64% stake to complete possession. The extra hold acquisition trade in to minority traders and staff values Cainiao at $10.3 billion, Alibaba mentioned within the announcement. “Regulation played no role” in its call-off of the IPO, Tsai informed traders on a matching shout on Tuesday, the place he emphasised that Cainiao is pivotal to the Taobao proprietor’s technique of “winning in e-commerce by regaining market share and driving growth.” [Alibaba]
