Alibaba, Ant Financial plans $400M investment in Didi
Alibaba Group with its affiliate Ant Financial plans to invest an additional US$400 million in China's largest ride share company Didi Chuxing
Alibaba Group plans to team up with affiliate Ant Financial to invest an additional US$400 million in China's largest ride share company Didi Chuxing, according to Tencent Technology.
It's not clear if the investment is part of a US$2.5 billion funding round Didi Chuxing is near closing now, or additional funding separate from the current round.
Alibaba held a 10% stake in Didi Chuxing after February 2015 when Didi Dache merged with rival Kuaidi Dache.
The stake was the result of around US$445 million investment Alibaba made in Kuaidi Dache prior to the merger.
In the latest investment proposal, Alibaba plans to commit US$200 million while its Internet finance arm Ant Financial will invest US$200 million, both via subscribing to preferred shares of Didi Chuxing.
In terms of Alibaba's key shareholders, SoftBank Group Corp. owns 32% of the e-commerce giant. Yahoo! holds a 15.4% stake. Jack Ma and Joseph Tsai each take a 7.8% and 3.2% interest as of March 31, 2016.
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