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Singapore sovereign wealth fund GIC Pte Ltd, and state investor
Temasek Holdings each purchased $500 million of Alibaba shares
at $74.00 apiece through subsidiaries, Alibaba said, offering
details of the SoftBank sale announced on Tuesday.
GIC and Temasek confirmed the transactions but declined to
provide further comment. Temasek is an existing investor in
Alibaba. (http://bit.ly/1WxEce6)
Alibaba purchased $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 $400 million, as expected, at the $74
per share price, he added.
SoftBank also offered $5.5 billion in debt securities, which can
be exchanged for Alibaba stock in three years, Tsai said.
SoftBank Group said on Tuesday it would sell at least $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.
Shares of Alibaba fell about 6.5 percent to close at $76.69.
(Reporting by Parikshit Mishra in Bengaluru; Additional
reporting by Anshuman Daga in SINGAPORE; Editing by Richard
Chang and Kenneth Maxwell)
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