China Tech News — China’s online-to-offline opportunities have reached a new level with investment from China’s top e-commerce firm into one of China’s leading retail chains. China’s Alibaba Group Holding Limited will invest approximately CNY28.3 billion for a 19.99% stake in Suning Commerce Group Limited. After the closing of the investment in Suning, Alibaba will be the second-largest shareholder in the Chinese electronics retailer.
BBC — Alibaba is the world’s largest online marketplace while Suning is a China-wide chain of electronics stores. Alibaba’s shares rose more than 2% overnight on Wall Street while stocks in Shenzhen-listed Suning surged to the maximum 10% limit on Tuesday. The firms plan to link their online and offline models, so customers could see goods in Suning stores then buy online. Under the deal, Suning will also open an online store on one of Alibaba’s shopping websites.
Business Times SG — SHANGHAI: Chinese Internet giant Alibaba is to pay 28.3 billion yuan (US$4.6 billion) for a nearly 20 per cent stake in consumer electronics retailer Suning, the two companies said in a statement Monday. At the same time the Chinese shopping chain will invest up to 14 billion yuan for just over one per cent of Alibaba, the statement said, bringing the total value of the deal to nearly US$7 billion.