Alibaba (BABA) contemplates reducing its stake in ZTO Express - Bloomberg

Alibaba (NYSE: BABA) contemplates reducing its stake in ZTO Express - Bloomberg

Investing.com -- Alibaba Group Holding Ltd. is exploring options to trim its minority stake in the express delivery company, ZTO Express (Cayman) Inc. This information comes from Bloomberg, citing sources that have asked to remain anonymous due to the private nature of the discussions.

In order to assess the potential for a sale of bonds that could be exchanged for shares of ZTO Express, Alibaba has initiated conversations with investment banks. These considerations are still in progress, and it is possible that Alibaba may decide against the sale of exchangeable bonds.

Back in 2018, Alibaba led a consortium of investors in acquiring a 10% stake in ZTO for $1.38 billion. This move was aimed at enhancing its global shipping services. The group of investors also included Alibaba’s logistics subsidiary, Cainiao. However, other buyers involved in the deal were not disclosed at the time.

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