Alibaba's Cainiao to raise more money; current funds good for up to 18 months
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
An employee works at a Tmall logistic centre in Suzhou, Jiangsu province, China, October 28, 2015. Picture taken October 28, 2015. REUTERS/Aly Song/File Photo
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
HANGZHOU, China (Reuters) - Cainiao Network, the logistics arm of Chinese e-commerce giant Alibaba Group Holding Ltd (NYSE: BABA), will hold another round of fundraising but it is hoping that money raised in March will be sufficient for a year to 18 months.
In its first round of funding this year, Cainiao attracted investors such as Singapore's Temasek Holdings and GIC Pte Ltd, Malaysia's Khazanah Nasional Bhd, and China's Primavera Capital.
Business news magazine Caixin reported that the value of the round was close to 50 billion yuan ($7.5 billion).
"In the future we will definitely raise money again," Chief Executive Judy Tong told a news conference but added there was no timetable for the fundraising. "Cainiao is a very young company. It requires a lot of investment."
Alibaba, which owns about 47 percent of Cainiao, wants to take a leading role in developing China's fragmented package delivery industry, as e-commerce spreads beyond urban hubs and requires a more robust logistics network. Cainiao manages a network of warehouses and crunches data to coordinate courier deliveries around China.
Tong also said the company had not come under further pressure from the U.S. Securities and Exchange Commission (SEC), which is probing Alibaba's accounting, part of which is focused on its accounting for Cainiao.
Alibaba has said it is cooperating with the investigation and has handed information to the SEC.
"Since we handed over materials the SEC has not come to find us," Tong said. "We are not very nervous."
($1 = 6.6689 Chinese yuan)
(Reporting by David Lin in HANGZHOU; Additional reporting and writing by John Ruwitch in SHANGHAI; Editing by Edwina Gibbs)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Caterpillar (CAT) Offers FY17 Guidance Update at Credit Suisse Conference
- VAALCO Energy (EGY) Receives NYSE Listing Notification
- xG Technology (XGTI) Files $22.9M Units Shelf
Create E-mail Alert Related CategoriesReuters
Related EntitiesTemasek Holdings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!