(Yicai Global) Aug. 23 -- An investment arm of Alibaba Group Holding has agreed to pay CNY1.6 billion (USD233 million) for a stake in a company it has chosen to provide exclusive after-sales service for customers who buy vehicles through Alibaba's Taobao and Tmall marketplaces.
Alibaba Investment or its affiliates will invest the funds into a joint venture with Teweilun Network Technology, a unit of steel wheel maker Zhejiang Jingu, Teweilun's parent company said in a statement today. Alibaba will have a 46.97 percent stake in the JV, while Teweilun Network will hold 16.27 percent.
Teweilun Network will invest CNY600 million (USD87.3 million) into the new firm, which will subsequently inject CNY200 million into Teweilun Zhichehuida Technology, which runs car maintenance service Qi Che Chao Ren, to hold 20 percent of the latter's equity.
Editor: Emmi Laine