ALIBABA Investment, a subsidiary of Chinese e-commerce giant Alibaba Group, sold off 72.5 million shares in Singapore Post (SingPost) for S$33.3 million on Friday (Jun 7).
The transaction lowers its stake in the national postal service provider to 11.34 per cent from 14.56 per cent, and trims its holding to about 255.1 million shares. It previously held approximately 327.6 million shares, indicated a filing on the Singapore Exchange (SGX).
The shares were sold at about S$0.46 apiece, a whisker below SingPost’s closing price of S$0.485 on Friday – which was down S$0.005, or 1 per cent, before the announcement.
Alibaba Group first invested in SingPost in 2014, buying a roughly 10.4 per cent stake for S$312.5 million at S$1.42 apiece.
In 2016, SGX gave Alibaba Group the go-ahead to up its stake in SingPost, and, in January the following year, Alibaba Investment was issued 107.6 million new shares at a price of S$1.74.
This second investment saw the group’s stake in SingPost jump to 14.4 per cent.
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As at Jan 11, 2017, Alibaba Investment held a direct interest – while Alibaba Group held a deemed interest – in 327.6 million shares, up from 220.1 million shares.
