Alibaba is holding negotiations to borrow $4 billion from a number of banks to finance its investments and takeovers.
Alibaba Group holds discussions with banking organizations to receive a loan of $4 billion to finance growth plans, including acquisitions. The plans of the Chinese e-commerce company to increase its capacity followed its expenditure worth billions of dollars on takeovers and investment in the past year in markets abroad and in China.
The deliberations, involving many banks, began with plans to borrow a loan worth $3 billion but a billion dollars could be added to the amount. A source stated that the loan would be finalized.
The largest online trading organization of China has boosted its investments in a huge range of businesses, from electronic payments in India to logistical partners and mobile applications in China. In June, Hangzhou-based organization and its financial service affiliate said they would jointly invest approximately $1 billion in food-ordering application ‘Koubei’ to make it an extensive facility that connects with conventional businesses, such as restaurants.
Two months later, the online retailer announced to spend around $4.5bn for approximately 20% share in Suning Commerce Group as an effort to improve its logistics by collaborating with a huge conventional retail chain.
In November, Alibaba said to turn Youku Tudou into a wholly owned division in an agreement that value the Chinese online video service provider at around $4.4 billion. In India, the company invested in One97 Communications and Snapdeal. One97 Communications runs a leading local electronic payment service known as Paytm.
In other news, The Hilltop News reported that Winslow Capital Management LLC has increased its stake in Alibaba by 28% in the final quarter, revealed by its funds filing to the Securities and Exchange Commission.
The fund owned 4,883,053 shares of the organization after purchasing 1,067,782 extra shares during that period. 20% of the shares of Alibaba worth $396.845 in last quarter.
Recently, a large number of other huge fund managers and institutional investors also lowered or increased their shares in the company. In the final quarter, Vontobel Asset Management increased position in Alibaba by 111.5%.
Vontobel Asset Management now owns 7,178,120 shares of the company, worth a sum of $591,805,000, after purchasing 3,784,821 extra shares during the final quarter. A new position was purchased by USS Investment Management in the enterprise during the final quarter worth around $77,694,000.
In the final quarter, Russel Frank Co. added to its stake by 41.9%. It currently owns 1,945,836 shares of the stock worth $159.04million after purchasing 574,117 extra shares during the final quarter. In other news, Bloomberg reported that Alibaba Chairman Jack Ma and Vice President Joseph Tsai will bolster the stock buyback of the company. They have decided to spend their owned money in buying stock worth $500 million as a part of their efforts to show their confidence in the online marketplace operator.
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