Reuters: Alibaba might buy at least 10 percent stake in Chinese courier Yunda

Wednesday 1 April 2020 07:07 CET | News

Alibaba is looking to buy the stake from Yunda’s controlling shareholders who own 52.19% of Yunda through their wholly owned company Shanghai LuoJieSi Investment Management, according to Reuters’ sources.

At the current market price, the stake would be worth at least USD 790 million. Furthermore, Alibaba, China’s dominant ecommerce company could go beyond 10% and buy up to 15% of Shenzhen-listed Yunda. Alibaba has already bought a small stake in Yunda which is below threshold for disclosure, said two other people with knowledge of the matter.

Shanghai-based Yunda, which went public through a backdoor listing in 2016, is one of several couriers that work with Alibaba under Cainiao, the ecommerce company’s logistics division launched in 2013.

Still, both Alibaba and Yunda declined to comment/respond to a request for comment.

In 2019, domestic delivery companies dispatched 63 billion parcels, up 24% from 2018, while revenue grew 23% year-on-year to USD 104.95 billion, data from the State Post Bureau showed in January 2020. But many companies are under pressure to boost logistics infrastructure and upgrade services to maintain market share as online retail continues to grow and amid continued price competition.

Thus, the move would mark another step forward in Alibaba’s efforts to gain a bigger say in China’s fragmented but fast-growing express delivery industry.

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Keywords: Yunda. Alibaba, China, shares, funding, ecommerce, delivery, parcels
Categories: Payments & Commerce
Countries: China
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