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Alibaba Group Holding: Alibaba Acquires Controlling Stake In Ecommerce Platform Lazada

The following excerpt is from the company's SEC filing.

Transaction Makes Alibaba a Leading eCommerce Platform in Southeast Asia

Hangzhou, China/Singapore, April 12, 2016

Alibaba Group Holding Limited and Lazada Group S.A. announced today that Alibaba entered into an agreement to acquire a controlling stake in Lazada, a leading eCommerce platform in Southeast Asia. The transaction consists of an investment of approximately USD500 million in newly issued equity capital of Lazada and acquisition of shares from certain shareholders of Lazada, for a total investment by Alibaba of approximately USD1 billion. The transaction is expected to help brands and di stributors around the world that already do business on Alibabas platform, as well as local merchants, to access the Southeast Asian consumer market.

Lazada currently operates eCommerce platforms in Indonesia, Malaysia, the Philippines, Singapore Thailand and Vietnam. These six countries combined have a population of approximately 560 million and an estimated Internet user base of 200 million, according to Internet Live Stats. With only 3% of the regions total retail sales conducted online, Southeast Asia is expected to offer tremendous growth potential to both companies as internet penetration continues to rise.

Globalization is a critical strategy for the growth of Alibaba Group today and well into the future, said Michael Evans, President of Alibaba. With the investment in Lazada, Alibaba gains access to a platform with a...