(Yicai Global) April 27 -- Shares in Shenzhen Aisidi have hit the daily up limit after the licensed Apple retailer, one of China’s largest, revealed an incoming CNY407 million (USD57.5 million) investment from e-commerce behemoth Alibaba Group Holding.

Aisidi stock [SHE:002416] opened 10 percent higher at CNY7.79 (USD1.10) and has remained there since.

Alibaba China Network Technology has agreed to pick up a 6 percent stake in the phone seller, the target said in a statement yesterday. It will pay just under CNY5.15 a share, a discount of nearly 27.3 percent on the April 24 closing price, in a private placement.

The pair will also set up a joint venture with Alibaba paying CNY51 million for a 51 percent stake, Aisidi holding 39 percent and managers in the new company holding the remaining 10 percent, the statement added. The JV will leverage Alibaba’s tech to digitize Aisidi’s supply and sales management system.

Aisidi is a renowned consumer electronics retail chain in China and its Coodoo brand is one of Apple’s biggest authorized resellers in the country. It also has first-level licenses to sell Apple products for a commission through education and corporate channels.

Editor: James Boynton