Alibaba to invest in hotel and retail firm Oriental Group
Oriental Group recently announced plans to raise RMB 141 million by issuing 27.53 million shares priced at RMB 5.14 per share to investors including Alibaba Group.
Zhejiang-based hotel chain, supermarket chain, food processing and e-commerce operator Oriental Group recently announced plans to raise RMB 141 million by issuing 27.53 million shares priced at RMB 5.14 per share to investors including Chinese e-commerce conglomerate Alibaba Group and Zhejiang-based luxury goods e-commerce business Yintai E-Commerce. Of this amount, Alibaba Group will subscribe for RMB 84.85 million and Yintai will contribute RMB 56.57 million. Funds will be used to repay outstanding bank loans.
Oriental Group's website indicates that it currently controls 15 subsidiaries that operate in the hotel chain, department store chain, supermarket chain, food processing, travel services, e-commerce, and logistics management domains. The company oversees 10 hotels (including two that are currently under construction), 39 supermarkets, and six shopping centers (two under construction).
Oriental Group's 2016 operating revenues reached RMB 1.116 billion, an increase of 5.43% YoY. Net profits were RMB 80.14 million.
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