Alibaba Group and SingPost announced that they have signed a joint venture agreement to expand their e-commerce logistics collaboration. The joint venture will focus on three main initiatives that will aim to build a unique, worldwide e-commerce logistics platform. After the initiatives, Alibaba will increase the stake in SingPost to from 10.23% to 14.51%. Alibaba first acquired a stake in SingPost in May 2014.
As part of the first initiative, Alibaba will buy a 34% stake in Quantium Solutions International (QSI) from SingPost for S$92 million (US$68 million). In the second initiative, Alibaba group will purchase a 5% stake in SingPost for US$187 million (US$139 million). This will result in Alibaba owning a 14.51% interest SingPost. The final initiative will consist of the two companies sharing their knowledge to enhance their e-commerce logistics value chain.
Source: Business Strategies Group Hong Kong – www.bsgasia.com