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Alibaba pays $459m for stake in Chinese hotel tech company


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IMAGE: Alibaba Group Holding Ltd »

September.29.2014

Alibaba Group Holding Ltdin its first big investment since raising $25 billion in a record-breaking New York initial public offeringhas bought 15 percent of Chinese hospitality technologyprovider Beijing Shiji Information Technology Co Ltd for 2.81 billion yuan ($458.66 million).

The investment is expected to allow the e-commerce giant to develop its Taobao travel businessalongside Beijing Shijiincluding back-office serviceswhile helping to migrate hotel customersto Alibaba's e-commerce website.

Beijing Shiji provides IT consulting to hotels in China's fast-growing marketIt sells everythingfrom software that manages room reservationspurchasinginventoryand point of salessystemsto broadband networks and billing systems.

The Shenzhen Stock Exchange-listed firm says almost 6,000 hotels in China use its products,including 90 percent of the country's five-star hotelsaccording to Sunday's filingIts customersinclude Grant Hyatt HotelsMarriott International IncWestin Hotels and Resorts and SofitelLuxury Hotels.

Alibaba's Taobao (ChinaSoftware unit agreed to purchase 54.55 million shares of the companyfor 51.52 yuan per shareBeijing Shiji disclosed in a regulatory filing on SundayThe deal shouldclose early next monthAn Alibaba spokesman declined to comment.

Alibaba initially partnered with Beijing Shiji in an agreement announced on March 28. BeijingShiji's shares have gained more than 46 percent since then.

 

Article Credit: Chinadaily

Updated 4 Years ago
 

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Tags:     Alibaba Group Holding Ltd     New York     Beijing Shiji     Alibaba's Taobao

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