According to Reuters, Chinese e-commerce giant Alibaba Group is looking to borrow up to US$8 billion to refinance the company’s existing debts. Part of the funds will be used towards the US$7.1 billion share buyback deal agreed with majority shareholder Yahoo in May 2012. Alibaba borrowed US$4 billion in loan last year to fund the privatisation of B2B subsidiary Alibaba.com and to finance the Yahoo share buyback.
In other news, various media outlets suggest Alibaba is preparing for a possible initial public offering (IPO) in 2013. Estimations value the company between US$55 billion and US$80 billion. Financial market commentators see the stepping down of company chief executive Jack Ma in May 2013 as a possible indicator of an IPO this year, with Hong Kong and New York suggested as possible listing destinations.
Source: Business Strategies Group Hong Kong – www.bsgasia.com