Alibaba Group Holding (HKG:9988) is exploring a potential sale of bonds exchangeable into shares of ZTO Express (HKG:2057) as it considers reducing its minority stake in the logistics firm, Bloomberg reported Tuesday, citing people familiar with the matter.
The e-commerce giant has discussed the structure with investment banks, though no final decision has been made, according to the report.
Alibaba acquired a 10% stake in ZTO for $1.38 billion in 2018 alongside other investors, including its logistics arm, Cainiao, the report said.
ZTO, which went public in New York in 2016 and completed a secondary listing in Hong Kong in 2020, has seen its US-listed shares fall about 13% this year. The company has a market value of roughly $13.6 billion.
A bond sale would follow a similar move by Baidu (HKG:9888), which raised $2 billion in March through exchangeable bonds tied to Trip.com (HKG:9961) shares, Bloomberg reported.
Shares of ZTO were down about 2% in morning trade on Wednesday.
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