Chinese e-commerce giant Alibaba is raising its stake in Lazada, the leading online marketplace in Southeast Asia, to 83 per cent from 51 per cent.
Tesco no longer a shareholder
As Alibaba exercises its option to buy out all Lazada shareholders, Singaporean sovereign fund Temasek and the Lazada management team are the only investors that would keep hold of their stock, of the remaining 17 per cent. That means Tesco will no longer be a shareholder of Lazada.
Growth opportunities in Southeast Asia
Lazada operates in six countries in the region: Singapore as its headquarter, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. Lazada will continue to operate under the same brand following the investment. The investment from Alibaba shows its optimism about online retail in Southeast Asia.
“The e-commerce markets in the region are still relatively untapped, and we see a very positive upward trajectory ahead of us. We will continue to put our resources to work in Southeast Asia through Lazada to capture these growth opportunities,” Daniel Zhang, CEO of Alibaba Group, said in a statement.
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