Alibaba Group HoldingLtd. agreed to acquire a controlling stake in Lazada Group SA's e-commerce platform, Lazada, for a total investment of about $1billion.
The total amount consists of an investment of about $500 millionin newly issued equity capital of Lazada and the acquisition of shares from certainLazada shareholders, according to an April 12 news release.
In connection with the deal, Alibaba entered into a put-callarrangement with certain Lazada shareholders that grants Alibaba the right to purchase,and the shareholders the right to collectively sell their remaining stakes in Lazadaduring the 12- to 18-month period after the transaction closes.
The agreement is expected to help businesses that already useAlibaba's platform and local merchants access the Southeast Asian consumer market.Lazada operates e-commerce platforms in Indonesia, Malaysia, the Philippines, Singapore,Thailand and Vietnam, which have a combined population of about 560 million andan estimated Internet user base of 200 million.
Credit Suisse (Hong Kong) Ltd. acted as exclusive financial adviserto Alibaba and Goldman Sachs (Asia) LLC as exclusive financial adviser to Lazada.