Chinese e-commerce firm Alibaba is forming a joint venture with Singapore Post Limited to enhance e-commerce logistics opportunities in Asia.
Alibaba Group Holding Limited will invest up to approximately USD67.85 million in Quantium Solutions International for a 34%, and SingPost will hold the remaining 66% of the equity of QSI. QSI is currently a wholly owned subsidiary of SingPost providing leading end-to-end e-commerce logistics and fulfillment services across the Asia Pacific region. Its network spans more than 10 countries and the company offers customers e-commerce logistics solutions and warehousing across Asia Pacific.
Alibaba Group will also purchase 107,553,907 new ordinary shares amounting to 5% of the existing share capital of SingPost for USD138.6 million. Upon completion, Alibaba's deemed interest on a fully diluted basis in SingPost will rise from 10.23% to 14.51%.
Alibaba Group's possible acquisition of additional equity in SingPost is subject to Info-Communications Development Authority of Singapore and SingPost's shareholder approvals. Alibaba Group acquired its initial stake in SingPost in 2014.
SingPost and Alibaba have also entered into a joint strategic business development framework to further improve efficiency and integration of e-commerce logistics solutions.