Alibaba is controlled by mainland entrepreneur Jack Ma Yun and Alibaba has gone public in Hong Kong.
Now Jack Ma decided to buy out the minority shareholders of Alibaba.com for HK$18.39 billion.Hong Kong stock exchange has confirmed the news and two firms have jointly signed documents.
Alibaba Group is the giant in e-commerce business on the mainland, and it has schemed to privatize the company. Hong Kong-listed unit’s independent board committee has endorsed the offer.
The terms of the privatization proposal is revaluated to be fair and reasonable.
The deal offers minority shareholders HK$13.50 per share, a premium of 60.4 per cent over the 60-day average closing price of the shares and a premium of 55.3 per cent over the 10-day average closing price before the privatization plan was announced on February 21.
The company and other parties in the proposal own 73.45 per cent of Alibaba.com, which can get more cash on hand through privatization.
Alibaba.com is planning to upgrade its operations and the revenue growth in 2012 is not so positive as in the fast few years.
Alibaba.com is trying to improve the trustworthiness of online suppliers and international buyers since in the past several years, many suppliers and buyers information was not verified and caused losses for buyers and suppliers
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