Alibaba pays $1 billion to acquire controlling stake in Lazada
Alibaba pays $1 billion to acquire controlling stake in Lazada
Chinese online marketplace Alibaba has struck a deal to acquire a controlling stake in Lazada Group SA, Southeast Asia's leading e-commerce platform, at a cost of US$1 billion.
The companies said the transaction consists of US$500 million worth of newly issued Lazada shares and an acquisition of shares from existing shareholders.
CNBC reported that Germany's Rocket Internet would sell a 9.1 per cent stake in Lazada for $137 million in cash but will still have an 8.8 per cent stake.
British supermarket giant Tesco will sell 8.6 per cent for $129 million, brining down its stake in Lazada to 8.3 per cent.
Bloomberg added one more name to the list: Investment AB Kinnevik.
Alibaba said the deal is expected to help brands and merchants around the word that already do business on its platform access the Southeast Asia consumer market.
"Globlisation is a critical strategy for the growth of Alibaba Group today and in the future," Michael Evans, president of Alibaba said.
"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 has entered into a put-call arrangement with certain Lazada shareholders, giving it the right to buy their remaining stakes at fair market value within 12 to 18 months.
Alexandre Dardy, CEO of Lazada Viet Nam, said: "This partnership aligns with our vision of making e-commerce a part of everyday life in Viet Nam. We are determined to enhance the online shopping experience and confident that, together with Alibaba, we will bring value to Vietnamese consumers by providing better choices, service, convenience and value."
Founded in 2012, Lazada is a marketplace for local and international brands in six countries: Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Viet Nam.
They have a combined population of 560 million and an estimated Internet user base of 200 million, according to Internet Live Stats.
Lazada is the biggest online shopping platform in Viet Nam where it is growing rapidly.
