Alibaba Shifts Stake in Real Estate JV to JV Partner E-House
Zhang Yushuo
DATE:  Apr 29 2021
/ SOURCE:  Yicai
Alibaba Shifts Stake in Real Estate JV to JV Partner E-House Alibaba Shifts Stake in Real Estate JV to JV Partner E-House

(Yicai Global) April 29 -- Chinese e-commerce giant Alibaba Group Holding is transferring its 85 percent stake in the online real estate joint venture that it set up last year with E-House China Enterprise Holdings to the property sales firm, according to a filing by E-House to the Hong Kong stock exchange yesterday.

No reasons were given for the change in ownership, but the announcement said that Alibaba will give Shanghai-based E-House full support to build a digital property marketing and trading platform.

E-House will allot 248 million new shares to Alibaba at a price of HKD7.5 (USD1) per share for Alibaba’s stake in Tmall Haofang, according to the filing. The deal, worth HKD1.9 billion (USD244.8 million), will give E-House sole ownership of the former JV.

Hangzhou-based Alibaba will hold a 22.57 percent stake in E-House after the transaction, making it the second biggest shareholder. E-House Chairman Zhou Xin, who will subscribe to another HKD1 billion of the new shares, will remain the biggest stakeholder with 22.84 percent equity.

The funds raised will be used to supplement working capital and to develop the Tmall Haofang platform, the filing said.

E-House’s share price [HKG:2048] was trading down 0.75 percent at HKD7.98 (USD1.03) as of 1 p.m. China time today.

Editor: Kim Taylor

Follow Yicai Global on
Keywords:   Alibaba,Property,Tmall Haofang,E-House China