Alibaba Acquires Controlling Stake in eCommerce Platform Lazada – Business Wire (press release)

HANGZHOU, China & SINGAPORE–()–Alibaba Group Holding Limited and Lazada Group S.A. announced today that
Alibaba entered into an agreement to acquire a controlling stake in
Lazada, a leading eCommerce platform in Southeast Asia. The transaction
consists of an investment of approximately USD500 million in newly
issued equity capital of Lazada and acquisition of shares from certain
shareholders of Lazada, for a total investment by Alibaba of
approximately USD1 billion. The transaction is expected to help brands
and distributors around the world that already do business on Alibaba’s
platform, as well as local merchants, to access the Southeast Asian
consumer market.

Lazada currently operates eCommerce platforms in Indonesia, Malaysia,
the Philippines, Singapore, Thailand and Vietnam. These six countries
combined have a population of approximately 560 million and an estimated
Internet user base of 200 million, according to Internet Live Stats.
With only 3% of the region’s total retail sales conducted online,
Southeast Asia is expected to offer tremendous growth potential to both
companies as internet penetration continues to rise.

“Globalization is a critical strategy for the growth of Alibaba Group
today and well into the future,” said Michael Evans, President of
Alibaba. “With the investment in Lazada, Alibaba gains access to a
platform with a large and growing consumer base outside China, a proven
management team and a solid foundation for future growth in one of the
most promising regions for eCommerce globally. This investment is
consistent with our strategy of connecting brands, distributors and
consumers wherever they are and support our ecosystem expansion in
Southeast Asia to better serve our customers.”

Max Bittner, CEO of Lazada Group added, “We are very excited about
joining forces with Alibaba and see significant synergies that will
drive great benefits to our customers in Southeast Asia. Southeast Asia
is an attractive mobile-driven consumer market that is highly fragmented
and diverse with significant barriers to entry and a nascent modern
retail sector that has large headroom for growth. The transaction will
help us to accelerate our goal to provide the 560 million consumers in
the region access to the broadest and most unique assortment of
products. Furthermore, leveraging Alibaba’s unique knowhow and
technology will allow us to rapidly improve our services and provide an
even more effortless shopping and selling experience.”

In connection with the transaction, Alibaba entered into a put-call
arrangement with certain Lazada shareholders, giving Alibaba the right
to purchase, and the shareholders the right to sell collectively, their
remaining stakes in Lazada at fair market value during the 12 to 18
month period after the closing of the transaction.

Founded in 2012, Lazada is the one-stop eCommerce gateway for local and
international brands and distributors to consumers in six distinct
Southeast Asian markets: Indonesia, Malaysia, the Philippines, Singapore
Thailand and Vietnam. By combining its regional presence with locally
tailored capabilities in areas such as supply-chain, last-mile delivery
and payment, Lazada has developed a unique solution for global brands
and distributors wanting to enter this rapidly growing region.

Credit Suisse (Hong Kong) Limited acted as exclusive financial advisor
to Alibaba and Goldman Sachs (Asia) LLC as exclusive financial advisor
to Lazada.

Safe Harbor Statements

This press release contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,” “expect,”
“future,” “continue,” “strategy” and similar statements. Forward-looking
statements involve inherent risks and uncertainties. A number of factors
could cause actual results to differ materially from those contained in
any forward-looking statement. Further information regarding these and
other risks is included in Alibaba’s filings with the SEC. All
information provided in this press release is as of the date of this
press release and is based on assumptions that Alibaba believes to be
reasonable as of this date, and Alibaba does not undertake any
obligation to update any forward-looking statement, except as required
under applicable law.

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