Alibaba raises stake in SingPost, preps for competition with Amazon

A logo of Alibaba Group is pictured at its headquarters in Hangzhou, Zhejiang province, China, October 14, 2015. REUTERS/Stringer CHINA OUT

Alibaba Investment Limited, a subsidiary of Alibaba Group Holding, has received in-principle approval from the Singapore Stock Exchange to raise its stake in Singapore Post (SingPost).

According to an exchange announcement on Thursday(December 15, 2016) , the Singapore Exchange (SGX) approved Alibaba’s listing and quotation of about 107.6 million new shares in SingPost, according to a stock exchange filing.

Targeted for completion by February 28, 2017, this second investment will raise Alibaba’s stake in Singpost to 14.4 per cent from 10.2 per cent at present.

The move comes at a time when the US-based e-commerce major Amazon is preparing to deepen its footprint in Southeast Asia, with the establishment of a presence in Singapore. It is reportedly planning to launch select local services in Singapore in Q1 2017, prior to rolling them out to the rest of the region.

DEALSTREETASIA reported in November 2016 that Amazon was planning to establish itself in the Indonesian market, with a proposed expenditure of up to $600 million.

To date, Amazon has already invested heavily into its India unit and has also been building its business operations in China in preparation for competing with Alibaba Group.

Meanwhile,  Lazada was acquired by Alibaba in a $1 billion deal earlier this year in a move aimed at lessening its reliance on the mainland Chinese market. Both Amazon and Alibaba will be seeking to entrench and deepen their footprint in the Indonesian e-commerce space.

With the acquisition of Redmart by Alibaba, for a consideration of between $30 million to $40 million, the competition between the two MNCs is expected to be fierce in the region.

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Chinese majors Baidu, Alibaba, Tencent & JD may see decline in US deals

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.