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July 31, 2011, 11:03 PM EDT
By Mark Lee
(Adds biggest jump in six weeks in first paragraph.)
Aug. 1 (Bloomberg) -- Alibaba.com Ltd. rose the most in almost six weeks in Hong Kong trading after its parent reached a deal with Yahoo! Inc. and Softbank Corp. over compensation for the spinoff of the Alipay payment business.
Alibaba.com rose as much as 7.4 percent to HK$11.66, the biggest intraday increase since June 22, before trading at HK$11.52 at 10:21 a.m. Parent Alibaba Group Holding Ltd. said on July 29 that its two biggest shareholders, Yahoo and Softbank, agreed to a compensation deal that may result in Alibaba Group receiving as much as $6 billion from Alipay.
The agreement ended a four-month dispute between Alibaba Group, China’s biggest e-commerce company, and its foreign shareholders over Alipay. Yahoo said previously it only learned about the August 2010 transfer of Alipay equity to a company controlled by Alibaba Chairman Jack Ma in March.
Softbank, Japan’s third-biggest mobile carrier, rose 0.8 percent to 3035 yen as of the 11 a.m. break in Tokyo trading. Yahoo shares fell 3 percent in New York trading on July 29 after the agreement with Alibaba was disclosed.
Alibaba Group will get between $2 billion and $6 billion in the case of an initial public offering or “other liquidity event” at Alipay, according to the statement. Within the range of the agreement, the amount to be paid to Alibaba in such events will be calculated by multiplying Alipay’s equity value by 37.5 percent.
Before the transfer, Alibaba Group owned 100 percent of Alipay.
Alibaba Group owns more than 70 percent of Hong Kong-listed Alibaba.com, a unit that offers business-to-business online commerce services.
--Editors: Garry Smith, Dave McCombs
To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
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(Adds biggest jump in six weeks in first paragraph.)
Aug. 1 (Bloomberg) -- Alibaba.com Ltd. rose the most in almost six weeks in Hong Kong trading after its parent reached a deal with Yahoo! Inc. and Softbank Corp. over compensation for the spinoff of the Alipay payment business.
Alibaba.com rose as much as 7.4 percent to HK$11.66, the biggest intraday increase since June 22, before trading at HK$11.52 at 10:21 a.m. Parent Alibaba Group Holding Ltd. said on July 29 that its two biggest shareholders, Yahoo and Softbank, agreed to a compensation deal that may result in Alibaba Group receiving as much as $6 billion from Alipay.
The agreement ended a four-month dispute between Alibaba Group, China’s biggest e-commerce company, and its foreign shareholders over Alipay. Yahoo said previously it only learned about the August 2010 transfer of Alipay equity to a company controlled by Alibaba Chairman Jack Ma in March.
Softbank, Japan’s third-biggest mobile carrier, rose 0.8 percent to 3035 yen as of the 11 a.m. break in Tokyo trading. Yahoo shares fell 3 percent in New York trading on July 29 after the agreement with Alibaba was disclosed.
Alibaba Group will get between $2 billion and $6 billion in the case of an initial public offering or “other liquidity event” at Alipay, according to the statement. Within the range of the agreement, the amount to be paid to Alibaba in such events will be calculated by multiplying Alipay’s equity value by 37.5 percent.
Before the transfer, Alibaba Group owned 100 percent of Alipay.
Alibaba Group owns more than 70 percent of Hong Kong-listed Alibaba.com, a unit that offers business-to-business online commerce services.
--Editors: Garry Smith, Dave McCombs
To contact the reporter on this story: Mark Lee in Hong Kong at wlee37@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
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