Yahoo! (YHOO) Seeking To Sell Alibaba Shares
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Yahoo Inc. (Nasdaq: YHOO) is seeking to sell up to $150 million worth of shares in Alibaba.com Ltd., according to a term sheet seen by Dow Jones Newswires.
Yahoo has a 39% stake in Alibaba.com's parent company, Alibaba Group. That stake would not be affected by the sale, but Yahoo is selling its direct stake in Alibaba.com of 57.48 million shares, or just over 1% of the company, acquired during its IPO.
It will sell the shares for $2.54 to $2.60 each, which is a discount of 4%-6.4% to Alibaba.com's last closing price on Monday, according to the term sheet.
Even after Yahoo takes the discount, YHOO will earn a return of at least 47% from the IPO less than 2 years ago.
Yahoo's sale is only possible now because earlier this year Alibaba ended a lockup period on IPO shares.
An Alibaba spokesman commented regarding Yahoo selling some of its shares, "We are pleased to learn of the Yahoo decision, because broader ownership of Alibaba.com, with increased liquidity and support among institutional investors, is what we hoped to achieve when we released the cornerstone investors."
Yahoo has a 39% stake in Alibaba.com's parent company, Alibaba Group. That stake would not be affected by the sale, but Yahoo is selling its direct stake in Alibaba.com of 57.48 million shares, or just over 1% of the company, acquired during its IPO.
It will sell the shares for $2.54 to $2.60 each, which is a discount of 4%-6.4% to Alibaba.com's last closing price on Monday, according to the term sheet.
Even after Yahoo takes the discount, YHOO will earn a return of at least 47% from the IPO less than 2 years ago.
Yahoo's sale is only possible now because earlier this year Alibaba ended a lockup period on IPO shares.
An Alibaba spokesman commented regarding Yahoo selling some of its shares, "We are pleased to learn of the Yahoo decision, because broader ownership of Alibaba.com, with increased liquidity and support among institutional investors, is what we hoped to achieve when we released the cornerstone investors."
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