Supermarket and convenience store operator Lianhua Supermarket Holdings jumped as much as 34 per cent during Monday morning trading after Alibaba took a stake in the company in the latest brick-and-mortar deal for the Chinese e-commerce giant.
Lianhua’s controlling shareholder Bailian Group, which agreed in February to partner with Alibaba to develop new technologies and integrate logistics and payments, said Alibaba will acquire more than 201m shares in Lianhua, or an 18 per cent stake, from online grocery Yiguo.com.
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The deal is subject to approval from the companies involved as well as regulators, Bailian said in a statement.
Alibaba in January outlined a $2.6bn plan to take domestic department store Intime private. The company also has investments in offline players including retailer Sunning and white goods maker Haier.
Lianhua’s shares jumped as much as 37 per cent during morning trading in Hong Kong, later easing to be up 21.6 per cent before the company suspended trading.
(Source: Financial Times)