The following press releases and news reports about China companies were carried on April 19. To view a full article or story, click on the link next to the headline.
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Alipay Owner Ant Financial to Start Shanghai IPO Process as Soon as 2016 (English article)
Tencent (HKEx: 700) CEO Ma to Donate 100 Mln Company Shares Towards Charity (company announcement)
Chinese Group Wants to Seal AC Milan Takeover by June (English article)
Siliconware Precision (Taipei: 2325) Says $1.7 Billion Tsinghua Deal Is on Hold (English article)
Bottom line: Baidu’s new reorganization is further evidence that the company plans to spin off its newer, money-losing units into separate companies, which could list on China’s OTC-style New Third Board later this year.
Baidu reorganizes
Online search leader Baidu (Nasdaq: BIDU) is in a couple of big headlines as it reportedly prepares to spin off some of its non-core businesses, led by word of a major reorganization that could help facilitate such spin-offs. A separate headline says that Baidu is also in talks for a $1 billion syndicated loan, in a move that is mostly market driven but also aims at getting fresh money to continue funding many of its loss-making newer businesses.
Baidu came under fire last year for its sluggish profit growth, as founder Robin Li insisted he would continue to invest heavily in his company’s loss-making businesses like its Nuomi group buying site and Qunar(Nasdaq: QUNR) online travel agency. Investors punished Baidu’s stock as a result, leading to reports earlier this year that Baidu was planning to spin off many of those businesses into separately listed companies. Read Full Post…
The following press releases and news reports about China companies were carried on April 14. To view a full article or story, click on the link next to the headline.
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Just a day after fast-growing car services firm UCar confirmed a major new tie-up with e-commerce giant Alibaba (NYSE: BABA), we’re getting more details about the new alliance that appears to auger an end to Alibaba’s previous relationship with homegrown Uber rival Didi Kuaidi. At the same time, Alibaba has just announced its largest overseas purchase ever by paying $1 billion for a controlling stake of Southeast Asian e-commerce specialist Lazada.
These 2 news items continue a recent acceleration in M&A activity for the hyperactive Alibaba, which is quite in line with the hyperactive nature of its founder and chief pilot Jack Ma. This kind of cyclical hyperactivity has become the norm for Alibaba in recent years. It typically sees the company’s high-profile activity go into overdrive for a year or so, only to come to a sudden halt when things become overheated and problems emerge. Read Full Post…
The following press releases and news reports about China companies were carried on April 13. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Buys Control of Lazada in $1 Bln Bet on SE Asia E-commerce (English article)
Shanda Group Makes Long Term Strategic Investment In Legg Mason (NYSE: LM) (PRNewswire)
Private Chinese Firm Sharing Mobile in Deal to Buy Nigerian Telco GiCell (Chinese article)
China Hotelier Jin Jiang (HKEx: 2006) Said to Weigh Boosting Accor (Paris: AC) Stake (English article)
Car Services Firm UCar secures $569 Mln, Files for Listing on New Third Board (English article)
Bottom line: Alibaba’s new tie-up with Car Inc hints at a looming divorce with Didi Kuaidi, while a major new funding for its Koubei unit foreshadows a major new push that will further heat up intense competition in take-out delivery services.
Koubei seeks big new funding
Just days after reports emerged of a massive new funding for its Ant Financial unit, e-commerce leader Alibaba (NYSE: BABA) is back in the fund-raising headlines with big plans for its Koubei take-out dining unit. At the same time, an intriguing new story about a strategic Alibaba alliance with an aggressive new player in the hired car services space hints that the company may also be contemplating a divorce with national leader Didi Kuaidi.
Both of these stories reflect the catch-up game that Alibaba is playing in two important growth areas of the Internet. Alibaba previously had a presence in both through investments in hired car service provider Kuaidi and group buying site Meituan. But both of those partners entered mega-mergers over the last 6 months with their major rivals. As a result, Alibaba has divorced itself from the current Meituan Dianping, and is looking to build up its own rival Koubei take-out dining service. (previous post) Read Full Post…
Bottom line: The naming of a technocrat as chairman of China Telecom ends speculation of an industry shake-up, and indicates China’s big 3 telcos will continue as big state-owned companies that lag their global peers.
Beijing continues old ways with new China Telecom chief
It’s been quite a few months since I last wrote about China’s 3 big telcos, so the naming of a new chairman of China Telecom (HKEx: 728; NYSE: CHA) seems like a good chance to revisit this lifeless trio that were a hot topic last year due to rumors of an industry shakeup. The naming of a new technocrat as head of the carrier implies that it’s business-as-usual at China Telecom and for the broader trio of state-run caarriers, and that a shake-up that many of us were hoping for isn’t coming.
The new chairman, Yang Jie, will assume the helm of China Telecom 4 months after his predecessor, Chang Xiaobing, abruptly stepped down last year due to a corruption probe against him. Chang himself was previously chairman of China Telecom rival China Unicom (HKEx: 763; NYSE: CHU), but switched places with China Telecom’s chief Wang Xiaochu in the middle of last year in a characteristic bureaucratic reshuffling by Beijing. Read Full Post…
The following press releases and news reports about China companies were carried on April 12. To view a full article or story, click on the link next to the headline.
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Car Inc (HKEx: 699) Hired Car Services Unit in Strategic Tie-Up with Alibaba (NYSE: BABA) (Chinese article)
Alibaba’s (NYSE: BABA) Koubei Soliciting Up to $2 Bln Funding – Report (English article)
Flight Data Company Feichangzhun Raises 933 Mln Yuan in Third Funding Round (Chinese article)
China’s HNA to Buy Airline Caterer Gategroup for $1.5 Bln (English article)
Bottom line: Massive new fund raising by Ant Financial and Didi Kuaidi show there’s still lots of money looking to invest in emerging Chinese industries, though current valuations are overblown and likely to stagnate as China’s economy slows.
Ant Financial raises $3.5 bln
Every time I write that new funding seems to be cooling for Chinese tech companies, new reports emerge of yet another mega-funding. Two such new fund-raisings are in the headlines as the new week begins, led by a massive $3.5 billion new round for Alibaba-affiliated (NYSE: BABA) Ant Financial. The other mega-deal has homegrown car services provider Didi Kuaidi poised to raise $1.5 billion or more in new funding, as it vows to outspend an equally aggressive Uber for supremacy in the China market.
These 2 fundings show there’s still plenty of money chasing hot deals in China’s emerging industries, many in the tech and financial sectors. Two of my younger friends here have left more traditional media jobs over the last year to join the crowded field of private equity firms that are funding many of these deals, allowing hot companies like Didi Kuaidi and Ant to easily meet their targets and achieve very high valuations in the process. Read Full Post…
Bottom line: Alibaba’s removal of the paywall from the SCMP’s website shows it may want to use the newly acquired newspaper in its bigger strategy to get more news from big data, as it seeks to boost its global influence.
Alibaba removes paywall at SCMP.com
E-commerce giant Alibaba (NYSE: BABA) is in the headlines as it wraps up its landmark purchase of Hong Kong’s leading English language newspaper, announcing it will formally remove the paywall on the South China Morning Post’s (SCMP) website as its first major strategic move. In a completely separate headline, Alibaba has also named a new head for its international public relations team, replacing a heavy-hitter it hired less than 2 years ago in the run-up to its record-breaking New York IPO.
Both of these moves reflect the rapid changes taking place not only at Alibaba, but also in the traditional media realm where the SCMP operates. Traditional newspapers like the SCMP are looking desperately for new revenue sources as they get abandoned by their traditional advertisers and subscribers who are flocking to the Internet. Read Full Post…
The following press releases and news reports about China companies were carried on April 9-11. To view a full article or story, click on the link next to the headline.
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Alibaba Affiliate Ant Financial Said to Lift Target in Record Tech Funding (English article)
240 BYD (HKEx: 1211) Electric Taxis Purchased by Nanjing Stay Stranded in Shenzhen (Chinese article)
New Didi Kuaidi Funding Round May Raise More Than $1.5 Bln (Chinese article)
China Said to Push for $1.16 Bln in Loans for Yingli (NYSE: YGE) (English article)
YTO Express to Sell Self to Shell Company for 17.5 Bln in Backdoor China Listing (Chinese article)
