Alibaba Group Holding Ltd. plans to acquire a 49% stake in a new unit that will control 29.9% of STO Express Co. Ltd., the South China Morning Post reported March 11, citing a filing from the Chinese logistics company.
The e-commerce giant will pay 4.66 billion Chinese yuan in the transaction, the newspaper said.
The new unit will be formed by Shanghai Deyin Investment Holding Co. Ltd., which holds about 54% of STO Express. Alibaba entered into a framework agreement with Deyin, which will transfer a combined 46% stake in the company to two new units, including one that will partially control STO Express, the report said.
Upon completion of the deal, the courier service provider will "further explore co-operations in areas of logistic technology, parcel delivery end and new retail logistics," according to the newspaper.
Following the announcement, STO Express' shares grew 10%, the daily price increase limit in the Shenzhen Stock Exchange.
As of March 8, US$1 was equivalent to 6.72 Chinese yuan.