February 22, 2012 / 1:44 AM / 6 years ago

Alibaba.com shares surge on parent plans to privatize

HONG KONG (Reuters) - Alibaba.com Ltd shares rose more than 40 percent to a seven-month high on Wednesday after they resumed trading following an announcement that its parent Alibaba Group will take it private for about $2.5 billion at its IPO price.

An employee walks inside the headquarters office of Alibaba (China) Technology Co. Ltd on the outskirts of Hangzhou, Zhejiang province March 16, 2010. REUTERS/Lang Lang

Alibaba.com opened at HK$13.18, compared with its IPO price of HK$13.50 and sharply higher than its last closing price of HK$9.25 on February 8.

The opening share price is the highest intraday level since mid-July last year.

Jack Ma’s Chinese e-commerce firm Alibaba Group said on Tuesday that it planned to take the Hong Kong-listed unit private, stressing the move was unrelated to any possible deal to buy back shares owned by Yahoo Inc.

Alibaba Group is offering investors HK$13.50 in cash per share, the same price as at the company’s IPO in 2007.

Reporting by Lee Chyen Yee; Editing by Chris Lewis

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below