(Yicai Global) Sept. 24 -- Alibaba Group Holding is preparing to sell all its equity in China’s only profitable long-term video platform Mango Excellent Media less than a year after buying it and at a huge loss. The e-commerce giant gave no reasons for the move.
Alibaba unit Hangzhou Ali Venture Capital will sell its 93.65 million shares in Mango, the broadcaster said yesterday. Ali Venture paid not less than CNY66.23 (USD10) per share in December last year. At yesterday’s closing price of CNY41.31 (USD6.39), this represents a loss of around CNY2.3 billion (USD355.6 million).
Alibaba gave no reasons for its withdrawal. The Hangzhou-based firm is also selling ahead of the expiry of the year-long lock up period on Dec. 26 and is having to apply for a special exemption.
A buyer has not been found for the stake, which represents about 5 percent of Mango, and so there is still a degree of uncertainty, said the unit of Hunan TV, one of China’s most popular provincial television channels.
China Mobile Capital Holding overtook Ali Venture to become Changsha, central Hunan province-based Mango’s second biggest shareholder in a private placement last month, raising its stake to 7 percent.
Editor: Kim Taylor