(RTTNews) - Alibaba Group Holding Ltd. (BABA) announced Tuesday that its logistics subsidiary Cainiao Smart Logistics Network Ltd. has withdrawn its initial public offering and listing application on the Hong Kong Stock Exchange.
At the same time, Alibaba Group plans to offer to minority shareholders of Cainiao, including employees, an opportunity to sell all of the outstanding shares of Cainiao held by them to Alibaba Group for $0.62 per share, representing a total consideration of up to $3.75 billion.
Cainiao shareholders may choose to accept the offer and sell their shares to Alibaba Group for cash consideration or continue to own Cainiao shares.
Alibaba Group owns approximately 63.7% of the fully-diluted equity interest in Cainiao (including vested equity interests under Cainiao's employee share ownership plan).
After completion of the Offer, Alibaba Group plans to align Cainiao's business to better realize strategic synergies with Taobao and Tmall Group and Alibaba International Digital Commerce Group, as well as support Cainiao to execute a long-term strategic expansion of its global logistics network.
