May 21, 2012 / 6:22 AM / 7 years ago

Alibaba in talks to raise $2.3 billion equity for Yahoo deal-sources

Chairman and chief executive of Alibaba Group Jack Ma speaks at a news conference in Beijing, in this January 19, 2011 file photograph. REUTERS/Jason Lee/Files

SINGAPORE/HONG KONG (Reuters) - Chinese Internet firm Alibaba Group is in talks with existing shareholders, including Singapore state investor Temasek Holdings TEM.UL, to raise about $2.3 billion in equity to partly finance its deal with Yahoo Inc. YHOO.O, two sources said.

Entrepreneur Jack Ma is buying back up to half of a 40 percent stake in his Alibaba Group from Yahoo for $7.1 billion, in a deal that moves the Chinese e-commerce leader closer to a public listing.

Alibaba is looking to raise about a third of the $7.1 billion through issuance of equity to shareholders, one of the sources told Reuters.

A second source also confirmed the talks, but said Temasek has not made a final decision on the investment.

Alibaba was not immediately available to comment and a Temasek spokesman declined to comment.

Temasek bought Alibaba Group shares from the Chinese company’s employees in September 2011 in a tender offer in which DST Global, Silver Lake and Yunfeng Capital also participated.

Reporting by Saeed Azhar and Denny Thomas; Editing by Muralikumar Anantharaman

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below