INTEGRATION WITH STORES
Alibaba ventures offline in R34bn Intime privatisation deal
Alibaba also sees an opportunity in helping Chinese brands upgrade their computer systems
Alibaba Group is leading a bid to take department store operator Intime Retail Group private, as China’s largest online retailer seeks to deepen its integration with brick-and-mortar stores. Alibaba and Intime’s founder, Shen Guojun, will pay HK$10 (R17.60) for the Intime shares they do not already own, according to a statement to the Hong Kong stock exchange. The offer represents a 42% premium over the last closing price, and the maximum amount of cash required, including options, is about HK$19.8bn (R34.75bn). Alibaba and Intime have been building a relationship for years. Alibaba originally took a stake in the retailer in 2014 and Alibaba CEO Daniel Zhang became Intime chairman the next year. The partnership already gives Alibaba access to Intime’s inventory and allows its online customers to pick up orders from physical stores. Privatisation will allow Intime to work more closely on integrating online and offline shopping with a separate group of shareholders. "Alibaba will be a...
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