Alibaba, the Chinese e-commerce giant, is set to purchase a controlling stake in Southeast Asian online retailer Lazada.
Valued at approximately $1 billion, this transaction will see Alibaba’s acquisition of around $500 million worth of newly issued shares in Lazada, as well as an equal amount of shares from existing shareholders. Selling investors include Germany’s Rocket Internet SE, Investment AB Kinnevik and British supermarket chain Tesco.
“With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation for future growth in one of the most promising regions for e-commerce globally,” says Alibaba president Michael Evans.
Founded in 2012, Lazada serves several regional markets, including Indonesia, Vietnam, Malaysia, Singapore, Thailand and the Philippines. With this deal, Alibaba will gain access to these profitable consumer markets, all of which are on the verge of an online shopping explosion with mobile and Internet usage propelling e-commerce opportunities.
