Hotel tech firm Shiji to sell 38% retail business stake to Alibaba
Chinese hotel system provider Beijing Shiji Information announces a framework agreement to sell shares of its fully-owned retail subsidiary to Alibaba Investment.
Chinese hotel system provider Beijing Shiji Information Technology (Shiji) signed the framework agreement with Alibaba Investment on October 31, 2017.
Shiji and Alibaba will work with the agreed restructure plan to have the equities held by Shiji either directly or indirectly of the fully owned or share-holding retail information system focused subsidiaries including Beijing Chang Jing Yi Kang Technology, Beijing Efuture Technology, Tech Trans Computing and Technology and Shanghai Shiyun Information Technology integrated under Shiji Retail and its subsidiary companies.
After the reconstruction, Shiji (HongKong) Limited will sell the 38% shares of Shiji Retail it owns to Alibaba Investment for around USD 0.5 billion. The exact price will be finalized through negotiation of both parties after the due diligence and equity evaluation, also will take the signed official agreement as the final result.
Shiji Retail will set up the new retail business committee to be responsible for new retail related product and service planning, development and research, marketing strategy etc.
Taobao (China) Software became the second largest shareholder of the company taking hold of 13.07% of the shares through acquiring 46,476,251 non-public offering shares of the company on 18th Dec, 2015. Both Ali Investment and Taobao (China) are under control of the same owner Alibaba Group Holding Limited.
The transaction is still pending approval from stockholder general meeting.