Alibaba takes control of logistics business pledges $15 billion to expand network
Cainiao
HONG KONG/BEIJING (Reuters) - Chinese e-commerce firm Alibaba Group (BABA.N) has taken control of logistics unit  Cainiao  and pledged to spend 100 billion yuan ($15 billion) over five years to build out a global logistics network  underscoring aggressive expansion plans overseas.
Alibaba will invest 5.3 billion yuan to boost its stake in Cainiao Smart Logistics Network to 51 percent from 47 percent  giving it direct control over the loss-making affiliate  suggesting a rough valuation of  Cainiao  at around $20 billion.
âOur commitment to  Cainiao  and additional investment in logistics demonstrate Alibabaâs commitment to building the most-efficient logistic network in China and around the world â Alibaba CEO Daniel Zhang said in a statement on Tuesday.
 Cainiao  was the focus of an investigation last year by the U.S. Securities and Exchange Commission (SEC) into Alibabaâs accounting practices.
 Alibaba  which will gain an extra seat on Cainiaoâs board giving it four out of a total seven seats   added that more shares were issued in the funding round to other investors.  It  did not give details about the other issuances  which would impact  Cainiaoâs  valuation.
The investment also signals  Alibabaâs  intention to boost control over China âs  domestic warehousing and delivery market  increasingly competitive as firms seek to make use of troves of logistics data about the countryâs Internet-savvy shoppers.
In June major logistics company SF Holding cut ties with  Cainiao  which provides logistics support directly to Alibabaâs top e-commerce platform Taobao . SF Holding claimed Alibaba had requested data unrelated to an existing partnership agreement. Alibaba denied the claims.
A person close to Alibaba  who asked not to be named  said  Cainiao  was not currently considering an IPO.
Alibaba and  Cainiao  declined to comment.
Alibaba co-founded Cainiao in 2013  with partners including department store owner Intime Group  conglomerate Fosun Group and a handful of logistics companies. It oversees roughly 57 million deliveries a day.
HONG KONG/BEIJING (Reuters) - Chinese e-commerce firm Alibaba Group (BABA.N) has taken control of logistics unit  Cainiao  and pledged to spend 100 billion yuan ($15 billion) over five years to build out a global logistics network  underscoring aggressive expansion plans overseas.
Alibaba will invest 5.3 billion yuan to boost its stake in Cainiao Smart Logistics Network to 51 percent from 47 percent  giving it direct control over the loss-making affiliate  suggesting a rough valuation of  [TGT] at around $20 billion.
âOur commitment to  Cainiao  and additional investment in logistics demonstrate Alibabaâs commitment to building the most-efficient logistic network in China and around the world â Alibaba CEO Daniel Zhang said in a statement on Tuesday.
  [TGT] was the focus of an investigation last year by the U.S. Securities and Exchange Commission (SEC) into Alibabaâs accounting practices.
  [TGT] added that more shares were issued in the funding round to other investors.   [TGT]   did not give details about the other issuances  which would impact  Cainiaoâs  valuation.
The investment also signals  Alibabaâs  intention to boost control over China âs  domestic warehousing and delivery market  increasingly competitive as firms seek to make use of troves of logistics data about the countryâs Internet-savvy shoppers.
In June major logistics company SF Holding cut ties with  Cainiao  which provides logistics support directly to Alibabaâs top e-commerce platform Taobao . SF Holding claimed Alibaba had requested data unrelated to an existing partnership agreement. Alibaba denied the claims.
A person close to Alibaba  who asked not to be named  said   [TGT] was not currently considering an IPO.
Alibaba and   [TGT] declined to comment.
Alibaba co-founded Cainiao in 2013  with partners including department store owner Intime Group  conglomerate Fosun Group and a handful of logistics companies. It oversees roughly 57 million deliveries a day.