News this week: The leading Chinese e-commerce company, Alibaba
Group, has announced plans to complete the buy-out of Beijing-based digital
mapping firm, AutoNavi. Alibaba paid US$294
million for a 28% stake in the company in May 2013. Alibaba is expected to pay
between US$1.13 billion and US$1.17 billion for the remaining shares of
NASDAQ-listed AutoNavi.
Alibaba will reportedly offer US$21 per ADR, which is a 27%
premium over the closing price of AutoNavi on NASDAQ on 7th February,
at US$16.54. The deal values the company at US$1.58 billion. According to media
reports, revenues for the company for the first three quarters in 2013 were
US$110 million.
As of the third quarter of 2013, AutoNavi had about 77
million active users of its free mobile map apps and had more than 31% market
share of the mobile app market in China, followed by Baidu’s 27% and Google’s
7.6%.
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