GIC, Temasek buy combined US$1b in Alibaba stock from SoftBank sale
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[NEW YORK] Singapore sovereign wealth funds bought US$1 billion of Chinese e-commerce giant Alibaba Group Holding's shares as part of a US$8.9 billion sale by Japan's SoftBank Group, Alibaba's biggest shareholder, the company said on Wednesday.
GIC and Temasek Holdings each purchased US$500 million of Alibaba shares at US$74 apiece through subsidiaries, Alibaba said, offering details of the SoftBank sale announced on Tuesday.
Alibaba purchased US$2 billion of its own stock at the same price, in a move which would add to earnings, executive vice chairman Joe Tsai told analysts on a call.
Members of the Alibaba Partnership of senior executives and founders purchased another US$400 million, as expected, at the US$74 per share price, he added.
SoftBank also offered US$5.5 billion in debt securities, which can be exchanged for Alibaba stock in three years, Mr Tsai said.
SoftBank Group said on Tuesday it would sell at least US$7.9 billion of shares in Alibaba to cut the Japanese company's debt. It said it would remain Alibaba's largest shareholder after the sale.
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Shares of Alibaba fell about 6.5 per cent to close at US$76.69 in New York trading on Wednesday.
REUTERS
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