Singapore GIC buys S$1.4 billion in Alibaba stock in SoftBank sale

Singapore GIC buys S$1.4 billion in Alibaba stock in SoftBank sale

Singapore sovereign wealth funds bought US$1 billion (S$1.4 billion) of Chinese e-commerce company Alibaba Group Holding Ltd's shares as part of an US$8.9 billion sale by Japan's SoftBank Group Corp, Alibaba's biggest shareholder, the company said on Wednesday.

Singapore's GIC Private, Ltd and Temasek Holdings each purchased US$500 million of Alibaba shares at US$74.00 apiece through subsidiaries, Alibaba said, offering details of the SoftBank sale announced on Tuesday.

Alibaba purchased US$2 billion of its own stock at the same price, in a move which would add to earnings, Executive Vice Chairman Joe Tsai told analysts on a call.

Members of the Alibaba Partnership of senior executives and founders purchased another US$400 million, as expected, at the US$74 per share price, he added.

SoftBank also offered US$5.5 billion in debt securities, which can be exchanged for Alibaba stock in three years, Tsai said.

SoftBank Group said on Tuesday it would sell at least US$7.9 billion of shares in Alibaba to cut the Japanese company's debt. It said it would remain Alibaba's largest shareholder after the sale.

Shares of Alibaba fell about 6.5 per cent to close at US$76.69.

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