Chinese private equity giant Fosun International is considering selling a stake worth $1.3 billion in Alibaba’s logistics affiliate Cainiao, which is doubling down on enhancing its delivery efficiency globally, Reuters reported Tuesday, citing three people familiar with the matter.
Two of the sources told Reuters that Fosun has been in talks with Alibaba and other Chinese investment firms for several months about selling part or all of its 6.7% stake in Cainiao at a valuation of nearly $20 billion, with plans to use the proceeds to invest in the consumer and healthcare industries.
Alibaba is considering buying part of the stake from Fosun, which owns the ClubMed resort brand and French fashion brand Lanvin among other assets, Reuters quoted one source as saying.
The news comes as Alibaba is ramping up efforts to integrate Cainiao into its logistics ecosystem in a fierce race with rivals like JD.com. In November, Alibaba raised its stake in Cainiao to 63% from 51%.
On Tuesday, Cainiao unveiled a three-year plan to be able to deliver packages within 24 hours in China and 72 hours globally, with a commitment to invest at least 1 billion yuan in its logistics network, increasing chartered flights, building warehouse facilities and expanding partnerships with customs authorities around the world.
Shanghai-based Fosun was an early investor in Cainiao, funding the delivery business to the tune of 500 million yuan in 2013, Reuters reported.
Contact reporter Ding Yi (email@example.com)