Advertise with fastmoving.co.za
 
 

Alibaba Group Holding Ltd will take a 14 percent stake in STO Express Co Ltd through a $693 million deal, the e-commerce giant’s fourth significant investment in a Chinese courier company.
Alibaba Group Holding Ltd will take a 14 percent stake in STO Express Co Ltd through a $693 million deal, the e-commerce giant’s fourth significant investment in a Chinese courier company.

Alibaba invests $693m for stake in Chinese courier STO Express

INTERNATIONAL NEWS

IOL - Mar 12th, 11:30

Alibaba Group Holding Ltd will take a 14 percent stake in STO Express Co Ltd through a $693 million deal, the e-commerce giant’s fourth significant investment in a Chinese courier company. 

Alibaba Group Holding Ltd will take a 14 percent stake in STO Express Co Ltd through a $693 million deal, the e-commerce giant’s fourth significant investment in a Chinese courier company.

Shares in STO Express shot up when trading opened and immediately hit the upper 10 percent limit on the Shenzhen Stock Exchange, according to Refinitiv data.

STO Express said in a statement that is is controlling shareholder planned to set up a new subsidiary that will own a 29.9 percent stake in the courier firm.

Alibaba will, in turn, invest 4.66 billion yuan ($693.44 million) for a 49 percent stake in the new subsidiary, and by extension hold more than 14 percent of STO Express, the statement said.

Alibaba, in a separate statement, confirmed its investment in “one of the top five express delivery companies in China”.

“We will deepen our existing collaboration with STO in technology, last-mile delivery across China and New Retail logistics,” it said.

“This investment is a step forward in our pursuit of the goal of 24-hour-delivery anywhere in China and 72 hours globally,” Alibaba added.

STO Express is Alibaba’s fourth investment in the Chinese courier sector after it acquired minority stakes in YTO Express Group Co Ltd, Best Inc and ZTO Express (Cayman) Inc.

STO Express is one of several companies that work with Alibaba under Cainiao, its logistics division launched in 2013.

Cainiao provides software and shares data with warehouses, carriers and other logistics companies that help deliver packages to shoppers on Tmall and Taobao, Alibaba’s largest e-commerce sites.

Cainiao works with a number of logistics companies to ensure packages are delivered and vendors paid, but relationships between Cainiao and its partners have at times been uneasy.

In 2017, Cainiao temporarily barred Chinese courier SF Express from taking deliveries from Alibaba’s e-commerce vendors in a dispute over the ownership of customer data.
IOL 

Related News

Takealot Group anticipates biggest Black Friday yet
22/11/2019 - 11:00
South Africa’s leading e-commerce group expects to ship at least one order every second, with roughly 10 000 boxes leaving their warehouses every hour this shopping season.

Chinese spending hits record high on Singles' Day
13/11/2019 - 13:53
Chinese consumers spent a record amount on Alibaba platforms on Monday during the annual “Singles’ Day” buying spree, the world’s biggest 24-hour shopping event, which was launched with a glitzy show by US singer Taylor Swift.

Billions in investments flow in to improve SA's economy
13/11/2019 - 11:30
More businesses have pledged billions of rands in investment to the ailing South African economy at the second investment conference in Sandton.

South Africa is emerging as a new hub for Retail Forex Trading
13/11/2019 - 10:16
South Africa's financial market is said to be the most developed & organized in Africa led by big Banks like Standard Bank, ABSA, FNB, FirstRand, Nedbank & local Stock Exchange (JSE) which is the largest stock market in Africa with daily trading volume of R23.7 Billion.

Online shoppers “spring clean” first week of Pick n Pay’s Black November deals
12/11/2019 - 09:08
Pick n Pay launched its weekly Black November deals for its Gauteng and Western Cape online shoppers last Monday and customers wasted no time in reviewing and securing their favourite deals.