Yahoo to buy 10 pc of Alibaba.com IPO shares
Hong
Kong,
Oct
9:
US
Web
giant
Yahoo
Inc.
will
subscribe
for
10
percent
of
the
shares
to
be
sold
by
China's
largest
e-commerce
company,
Alibaba.com
Ltd,
according
to
a
term
sheet,
in
an
initial
public
offering
that
is
expected
to
raise
roughly
US$1
billion.
The company plans to sell 858.9 million shares, or 17 percent of its enlarged share capital, in a Hong Kong listing.
Of the shares to be sold, 75 percent are earmarked for global investers, 15 percent for Hong Kong retail investors and 10 percent for Yahoo.
In 2005, Alibaba absorbed Yahoo's China business, and Yahoo bought a 40 percent stake in Alibaba for US$1 billion.
The China consumer business will not be included in the IPO, sources have said.
Reuters
>
Story first published: Tuesday, October 9, 2007, 13:35 [IST]