Alibaba’s Cainiao makes buyout offer for local rival Best ahead of planned blockbuster Hong Kong IPO
- The buyout offer is from a consortium of investors, including Cainiao, Alibaba and Best’s founder and CEO
- Best has formed a special committee consisting of three independent directors to evaluate and consider the preliminary proposal
Chinese logistics company Best, which counts e-commerce titan Alibaba Group Holding among its investors, said it has received a preliminary buyout offer from a consortium including local rival Cainiao, the logistics arm of Alibaba that is preparing a planned US$1 billion IPO in Hong Kong.
Best said in a Monday statement that it had received a “preliminary non-binding proposal letter” from Best founder and CEO Shao-Ning Johnny Chou on behalf of a consortium of key figures and companies, including its chief strategy and investment officer, Denlux Logistics Technology Invest, Alibaba Investment, BJ Russell Holdings, and Cainiao Smart Logistics Investment.
The letter, dated November 3, 2023, and shared by Best on Monday, proposes the purchase of all outstanding shares in Best at a price of US$0.144 per ordinary share, or US$2.88 per American Depositary Share.
According to the letter, the consortium plans to fund the deal primarily through Cainiao’s own equity capital and cash. The consortium collectively owns about 49 per cent of the issued and outstanding shares of Best.
Best said that its Board has formed a special committee consisting of three independent directors to evaluate and consider the proposal. One of those directors, Ying Wu, will chair the special committee.
Alibaba and Cainiao did not immediately respond to requests for comment on Monday.
