Temasek and GIC buy $1 billion in Alibaba stock

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By Larry Banks

Singapore state funds have purchased $1 billion worth of shares in Chinese e-commerce firm Alibaba, as part of an $8.9 billion sale by SoftBank of Japan, the largest shareholder in Alibaba.

Singaporean sovereign wealth fund GIC and state investor Temasek Holdings both bought $500 million in the Chinese company at $74 each through subsidiaries.

GIC and Temasek confirmed the transactions but have so far declined to comment on the matter.

Alibaba has purchased $2 billion in its own stock for the same price, which should add to earnings, said Executive Vice Chairman Joe Tsai to analysts on a call.

Members of the Alibaba Partnership of senior executives and founders bought another $400 million at the $74 per share price, he also added.

Softbank also offered $5.5 billion in debt securities, which may be exchanged for stock in Alibaba in three years. SoftBank said this week that it will sell at least $7.9 billion of shares in Alibaba to cut debt at the Japanese firm, although it will still be the largest shareholder in the e-commerce giant after the sale.

SOURCE: Reuters.

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