Alibaba gets nod to raise SingPost stake

THE Singapore Exchange has given the green light for Chinese e-commerce giant Alibaba Group to raise its stake in Singapore Post.

Alibaba Investment Limited, a subsidiary of Alibaba Group Holding, received in-principle approval from the bourse operator on Wednesday for the listing and quotation of about 107.6 million new shares in SingPost, the postal group said in a filing on Thursday morning. This is subject to compliance with SGX listing requirements, and shareholders' approval.

Shareholders will be receiving a circular containing further details of the proposed share issuance, and notice of a related extraordinary general meeting.

Earlier reports have stated that the deal is targeted for completion by Feb 28, 2017. This second investment from Alibaba will raise its stake in SingPost from 10.2 per cent to 14.4 per cent.

After the deal got its regulatory nod in late October, SingPost shares closed 4.6 per cent higher on the same day.

The counter closed at S$1.47 on Wednesday, up 0.5 Singapore cent, or 0.34 per cent, from Tuesday.