News this week:
Hong Kong-listed B2B e-commerce company, Alibaba.com,
has announced plans to privatise the company have been approved by the majority
of its shareholders. A special shareholders meeting was held in Hong Kong where
more than 95% of shareholders voted in favour of the US$2.5 billion buyout
offered by parent company Alibaba
Group.
Alibaba Group regained control of the 27% minority stake in
Alibaba.com it does not already own and will now delist Alibaba.com from the
Hong Kong Stock Exchange. The deal will see independent stockholders paid HK$13.50
per share – approximately 60% more than the stock’s average closing price for
the two months prior to the announcement of the proposal in February this year.
If Alibaba.com’s financial results from 2007 are compared to
those it recorded in 2011: Revenues have increased almost 200% and the
company’s net profit has risen 77%. The company is delisting the stock at the
same price it offered it to investors during the IPO five years ago
(HK$13.50).
Alibaba.com’s share price dropped 42% in 2011. Trading of
the company’s stocks were suspended from trading on 25th May and
resumed on 28th May.
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