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Singapore Just Bought $1 Billion in Alibaba Stock

Key Speakers At Day Three Of The APEC CEO SummitKey Speakers At Day Three Of The APEC CEO Summit
Billionaire Jack Ma, chairman of Alibaba Group.Photograph by SeongJoon Cho — Bloomberg via Getty Images

(Reuters) – Singapore sovereign wealth funds bought $1 billion of Chinese e-commerce company Alibaba Group’s shares as part of an $8.9 billion sale by Japan’s SoftBank, Alibaba‘s biggest shareholder, the company said on Wednesday.

Singapore’s GIC Private and Temasek Holdings each purchased $500 million of Alibaba shares at $74 apiece through subsidiaries, Alibaba said, offering details of the SoftBank sale announced on Tuesday.

Alibaba purchased $2 billion of its own stock at the same price, in a move which would add to earnings, executive vice chairman Joe Tsai told analysts on a call.

Members of the Alibaba Partnership of senior executives and founders purchased another $400 million, as expected, at the $74 per share price, he added.

SoftBank also offered $5.5 billion in debt securities, which can be exchanged for Alibaba stock in three years, Tsai said.

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SoftBank Group said on Tuesday it would sell at least $7.9 billion of shares in Alibaba to cut the Japanese company’s debt. It said it would remain Alibaba‘s largest shareholder after the sale.

Shares of Alibaba (BABA) fell about 6.5% to close at $76.69.