Crackdown-affected Alibaba to sell 5% of the shares in the Chinese transmitter

A man walks past a logo of the Alibaba Group at the office building in Beijing, China on August 9, 2021. REUTERS / Tingshu Wang / File Photo

SHANGHAI, September 24 (Reuters) – An investment arm for Chinese e-commerce giant Alibaba Group Holding Ltd. (9988.HK), which is aimed at a regulatory framework, will divest its entire 5.01% stake in the broadcaster Mango Excellent Media Co Ltd (300413.SZ), said the media company.

The sale comes less than a year after the investment in December last year, when Chinese authorities launch an anti-trust attack on large technology companies.

A major target has been Alibaba, which was fined $ 2.75 billion for anti-competitive practices.

In Thursday’s application to the stock exchange, the media company said that Alibaba’s investment arm would apply for an exemption from a one – year lockup that it undertook at the time of the investment.

Since then, the shares in Mango Excellent Media have fallen by about 40%. The company, based in China’s western province of Hunan, produces Internet and television content in addition to running a shopping department.

Alibaba did not respond to a request for comment.

Alibaba’s share price has fallen by almost half since October last year, when the authorities suddenly stopped the plans for its financial subsidiary, Ant Group, to go public.

Mango Excellent Media is one of several media-related investments financed by Alibaba, which is a major shareholder in Weibo Corp. (WB.O), China’s social media equivalent of Twitter.

It also wholly owns the South China Morning Post, Hong Kong’s leading English-language newspaper.

In July, Reuters reported that Weibo was negotiating to go private with the help of a Shanghai-based state-owned company, in an attempt to help Alibaba divest. Following the report, the company’s chairman, Charles Chao, said he had no such discussions.

In addition to Weibo, Alibaba owns shares in some small Chinese online media and has its own filming department, Alibaba Pictures.

Reporting by Josh Horwitz; Editing by Clarence Fernandez

Our standards: Thomson Reuters Trust Principles.

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