The U.S. SEC is investigating Alibaba’s sales data of its annual Single’s Day event. Softbank has since reduced its exposure but has maintained its dominant profile in Alibaba. With Softbank selling some of its shares, Singaporean wealth funds have now invested in the troubled Chinese e-commerce giant.
With Softbank diluting its stake in Alibaba Group Holding Ltd, Singaporean wealth funds have sunk in $1 billion in the Chinese e-commerce giant. Despite the dilution of its shares Softbank will still retain the number one spot as Alibaba’s biggest shareholder.
Alibaba Group Holding has reported that Singapore’s Temasek Holdings and GIC Private have each purchased $500 million worth of Alibaba shares at $74.00 per share through their subsidiaries.
Joe Tsai, Alibaba’s Executive Vice Chairman, has reported that the company has also repurchased $2 billion of its own shares at the above mentioned price point. This will add to its earnings.
He went on to add that, founders along with members of Alibaba Partnership of senior executives have also purchased $400 million of the company’s shares at the above stated price.
Tsai said, SoftBank has offered $5.5 billion in debt securities, which can be exchanged for Alibaba stock after a lock in period of three years.
Earlier this week, Softbank had reported that it would sell Alibaba’s shares worth at least $7.9 billion, in a move that has been described as a means to improve its debt profile. Softbank has clarified that it would remain Alibaba’s largest shareholder even after the sale.
With this news hitting the market, Alibaba’s shares fell by 6.5% to close at $76.69.
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