(Reuters) – China’s Alibaba Group plans to spin off its logistics arm Cainiao with an initial public offering (IPO) in Hong Kong, as the Chinese e-commerce giant announced its restructuring six months ago.
Alibaba announced on Tuesday that it had submitted a proposal to the Hong Kong stock exchange to spin off logistics network Cainiao, but said financial terms had not been finalized.
However, Alibaba, which holds a 69.54 percent stake in Cainiao, will continue to hold more than 50 percent of the shares and the company will remain a subsidiary after the split, he added.
Reuters reported in May that Cainiao aimed to raise between $1 billion and $2 billion (€943.6 million to €1.89 billion).
At the end of March, Alibaba announced that it wanted to divide its company into six units, with capital increases or IPOs to finance their growth.
(Reporting Ayushman Ojha and Brenda Goh; French version Mariana Abreu, editing by Kate Entringer)
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