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Alibaba affiliate leads $1.53B JV for Hong Kong logistics center

Published 06/06/2018, 08:56 AM
© Reuters.  Alibaba affiliate leads $1.53B JV for Hong Kong logistics center
BABA
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  • Alibaba’s (NYSE:BABA) logistics affiliate Cainiao Smart Logistics Network will lead a JV to invest $1.53B in a new logistics center in Hong Kong’s airport.
  • Cainiao will take a 51% stake in the JV while state investment firm China National Aviation Corp and courier YTO Express will have 35% and 14%, respectively.
  • The center will cover an estimated 380K square meters and handle 1.7M tonnes of cargo per annum when at full capacity. The center should open in 2023.
  • Alibaba pledged to spend $15B over five years to build out Cainiao’s logistics network when it took control last fall.
  • Alibaba shares are up 0.5% premarket to $209.33.
  • Now read: Alibaba: Tops 0, Remains A Strong Buy - Revenue Growth 40%, Forward P/E 20


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