Photo: EPA, Long Wei.
SoftBank Group Corp, the largest investor in Alibaba Group, has made a total divestment of US$8.9 billion worth of shares that it owned in the Chinese e-commerce giant as part of a major fundraising effort.
In a statement on Thursday, the Japanese conglomerate said its newly formed Mandatory Exchangeable Trust had successfully made an aggregate private placement of US$5.5 billion in securities exchangeable into Alibaba shares in three years to unnamed qualified institutional buyers .
In that announcement, Alibaba agreed to buy US$2 billion of its own shares from SoftBank using cash on hand.
GIC Private Limited, a sovereign wealth fund established by the Singapore government, had also agreed to buy US$500 million of Alibaba shares from SoftBank.
The company had a 32.2 per cent stake in the world s largest e-commerce services company as of March 31.