Chinese E-Commerce Giant Offloads Stake in Electric Vehicle Maker
Alibaba Group Holding (BABA) has garnered $317 million through the sale of approximately 33 million US-traded shares of XPeng Inc., according to sources familiar with the matter.
Taobao China Holding Ltd., an Alibaba subsidiary, priced the American depositary shares (ADRs) at $9.60 each, representing a 2.9% discount to XPeng’s Tuesday closing price of $9.89 per ADR. The shares were marketed at a range of $9.60 to $9.75 per ADR.
XPeng’s ADRs experienced a nearly 4% decline on Wednesday, trading at $9.50 each in New York after initially dropping as much as 7.7%.
Alibaba’s move to sell its XPeng stake follows its disclosure of intention to divest 33 million ADRs in a filing with the US Securities and Exchange Commission. This sale comes after Alibaba sold 25 million of XPeng’s shares in December. While XPeng terminated its agreement with Taobao China regarding board nominations, the EV maker intends to maintain collaboration with Alibaba in research, development, and marketing services, exploring new business opportunities in the future.
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