Chinese Internet giant Alibaba Group Holding has invested $250 million for a 10.35 percent stake in Singapore Post Ltd., the city-state's main postal and delivery service. The goal of the investment is to create an international e-commerce logistics platform.
The deal will create 190 million new shares and involve an additional 30 million existing treasury shares. It will yield about S$308 million in net proceeds for SingPost, which is looking to expand its e-commerce business in Southeast Asia, mainly through holdings and acquisitions, reports The Wall Street Journal.
The joint venture will give Alibaba access to SingPost's international logistics capabilities, while SingPost can benefit from Alibaba's wide connections and deep reserve of e-commerce know how.
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