GIC, Temasek raise Alibaba stakes

The GIC corporate logo seen during staff conference in Singapore, on April 21, 2008.
The GIC corporate logo seen during staff conference in Singapore, on April 21, 2008.PHOTO: BLOOMBERG

GIC and Temasek Holdings have snapped up about US$1 billion (S$1.38 billion) of Alibaba's shares, the Chinese e-commerce company said yesterday.

They are buying part of the US$8.9 billion of shares that Alibaba's largest shareholder, Japan's SoftBank Group, is selling.

The move to raise their stakes in the world's largest e-commerce platform is not surprising, CIMB Private Banking economist Song Seng Wun said.

"China's potential as a consumer market and Alibaba's leading position are a given. Beyond that, it has an evolving business model that is also tapping into consumer financing. It ticks all the right boxes as a tech investment for long-term growth," he added.

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A version of this article appeared in the print edition of The Straits Times on June 03, 2016, with the headline 'GIC, Temasek raise Alibaba stakes'. Print Edition | Subscribe