Alibaba announced that its logistics subsidiary Cainiao Smart Logistics Network Limited has withdrawn its initial public offering and listing application on the Hong Kong stock exchange. The Chinese online retailer plans to offer minority shareholders of Cainiao, including employees, the possibility to sell all their shares for $0.62 per share, representing a total consideration of up to $3.75 billion. Alibaba owns 63.7 percent of the fully diluted shares in Cainiao.
Alibaba added that it plans to align Cainiao’s business “to better realize strategic synergies with Taobao, Tmall Group, and Alibaba International Digital Commerce Group, as well as support Cainiao in executing a long-term strategic expansion of its global logistics network.”
