Alibaba's Minority Stake Buy Plan in Cainiao May Not Impact Earnings Much -- Market Talk

Dow Jones03-28

0541 GMT - Purchasing a minority stake in Cainiao won't have a meaningful impact on Alibaba's balance sheet and earnings, according to Chelsey Tam, senior equity analyst at Morningstar. The e-commerce giant dropped its Hong Kong IPO plan for its logistics subsidiary Cainiao earlier this week and offered to purchase the 36.3% stake held by Cainiao's minority shareholders for a consideration of up to US$3.75 billion. This represents just 4% of Alibaba's cash, cash equivalents, short-term investments, equity securities and other investments in the current assets as of the end of last year, Tam says. "We agree with Alibaba that the valuation of a Cainiao IPO under the current capital market conditions wouldn't be attractive," she adds. Alibaba's shares are up 3.5% to HK$71.20. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

March 28, 2024 01:41 ET (05:41 GMT)

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This represents just 4% of Alibaba's cash, cash equivalents, short-term investments, equity securities and other investments in the current assets as of the end of last year, Tam says. \"We agree with Alibaba that the valuation of a Cainiao IPO under the current capital market conditions wouldn't be attractive,\" she adds. Alibaba's shares are up 3.5% to HK$71.20. 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The e-commerce...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BABA","symbol_name":"阿里巴巴","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2422180816","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2422180816","pubTimestamp":1711604460,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0541 GMT - Purchasing a minority stake in Cainiao won't have a meaningful impact on Alibaba's balance sheet and earnings, according to Chelsey Tam, senior equity analyst at Morningstar. The e-commerce giant dropped its Hong Kong IPO plan for its logistics subsidiary Cainiao earlier this week and offered to purchase the 36.3% stake held by Cainiao's minority shareholders for a consideration of up to US$3.75 billion. This represents just 4% of Alibaba's cash, cash equivalents, short-term investments, equity securities and other investments in the current assets as of the end of last year, Tam says. \"We agree with Alibaba that the valuation of a Cainiao IPO under the current capital market conditions wouldn't be attractive,\" she adds. Alibaba's shares are up 3.5% to HK$71.20. 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