Chinese e-commerce titan Alibaba will take control of domestic department store Intime through a $2.6 billion privatization scheme, the companies said Tuesday, sending shares of the mall operator surging. Alibaba, and Intime founder Shen Guojun have together offered to pay HK$10 per share to buy the shares they do not already own of the Hong Kong-listed chain.
The deal will increase Alibaba's stake from 28 percent to 74 percent after it first invested $692 million in the firm in 2014.
News of the deal sent Intime's shares soaring 35.7 percent to HK$9.54 in Hong Kong Tuesday. The maximum cash required for the proposal is expected to be HK$19.8 billion ($2.6 billion), the statement said. - AFP, Shanghai