News
James B. Bell
- September 26, 2023
Alibaba Group Holding Ltd. has announced plans to spin off its Cainiao logistics unit and list it on the Hong Kong Stock Exchange. This move is aimed at unlocking value from Alibaba's sprawling business and allowing investors to better evaluate its different parts. The company expects that the spinoff will also enhance the operational and financial transparency of Cainiao Group. Even after the spinoff, Alibaba will still retain more than half of the shares in Cainiao and keep it as a subsidiary. The specific size of the spinoff and the extent of Alibaba's stake reduction are yet to be determined. Bloomberg News has reported that an official announcement on the Cainiao spinoff could be made in the following week.
A Part of a Broader Business Shakeup
Earlier this year, Alibaba's management outlined a plan to spin out its cloud-computing business as part of a broader business reorganization. The goal of this shakeup, which was first announced in March, is to create six separate units within Alibaba that can pursue their own fundraising and initial public offerings.
Alibaba's U.S.-listed shares experienced a slight 0.2% decline during morning trading on Tuesday. However, the stock has only dropped about 2% year-to-date.
Related Articles
Weekly Market Outlook
U.S. stocks are set for a mixed start to the week as investors await key economic data, including the inflation report for August. Stay updated with the latest...
Concerns Over Trudeau Administration's Fiscal Plans
Canadian Prime Minister Justin Trudeau faces criticism over government spending and tax policies, as concerns about the fiscal deficit and inflation rise.
Petroleum Futures Prices Drop Amidst Geopolitical Concerns and Seasonal Downtrend
Petroleum futures prices have dropped due to geopolitical concerns and seasonal downtrend. Refining product contracts, such as ultra-low sulfur diesel and RBOB,...