Alibaba to invest US$693m in STO Express to boost China's logistics industry
CHINESE e-commerce giant Alibaba is to invest about CNY4
CHINESE e-commerce giant Alibaba is to invest about CNY4.66 billion (US$693 million) in the delivery company STO Express Co Ltd, reports American Shipper citing media reports.
China's Xinhua news agency said: 'According to a statement released by STO Express on Monday, its controlling shareholder Shanghai Deyin Investment Holding Co Ltd. will set up two new subsidiaries. Alibaba will invest CNY4.66 billion and own 49 per cent in one of the new subsidiaries. That subsidiary will own 29.9 per cent stake in STO Express, and by extension, Alibaba will hold 14.6 per cent.'
Through the deal, Alibaba and STO will 'deepen their collaboration in the transformation of China's logistics industry,' the news service said.
Reuters reported that STO is one of several companies that works with Alibaba's logistics division Cainiao and that Alibaba also has acquired minority stakes in other courier companies including YTO Express Group Co Ltd, Best Inc and ZTO Express (Cayman) Inc.
According to Xinhua, 'In May last year, Alibaba's delivery arm, Cainiao Network, said it would set up more global logistics bases to make its logistics network smarter and more efficient, ultimately aiming to be able to deliver anywhere in the world within 72 hours. In 2017, Alibaba Group also announced an investment of CNY100 billion over five years to build a global logistics network.'