China’s Fosun to Invest in Logistics Venture with Alibaba

Source: Reuters

HONG KONG, China — Chinese conglomerate Fosun International Ltd said it has teamed up with Alibaba Group Holding Ltd and other parties in a logistics project valued at about 5 billion yuan ($816 million).

Fosun is required to contribute 500 million yuan for its 10 percent interest, the company said in a filing late on Wednesday, implying that the total value of the project is around 5 billion yuan.

Alibaba, China’s largest e-commerce services provider, established the consortium which will invest as much as 100 billion yuan ($16.34 billion) over the next five to eight years to develop logistics to improve delivery in China’s booming e-commerce sector, the South China Morning Post reported on Wednesday.

It is the second major investment announced by Fosun this week after it revealed earlier that it was joining AXA Private Equity and other shareholders to offer 17 euros a share for the stock they do not already own in Club Mediterranean.

Fosun’s shares ended 13 percent higher on Wednesday, outperforming the main Hang Seng Index’s 1.6 percent fall.

By Donny Kwok; Editing by Lee Chyen Yee and Stephen Coates