Reuters reports China’s e-commerce giant Alibaba plans to invest RMB2.1 billion in supermarket chain Sanjiang Shopping Club to further expand its retail presence. Sanjiang said announcements it had made about Alibaba’s investment had prompted the Shanghai stock exchange to ask whether Alibaba will ultimately seek control. Sanjiang’s shares were suspended on Nov. 8 and will resume trading on Nov. 21. Under the terms of the deal outlined in the stock exchange filings, Alibaba will subscribe to a private placement in Sanjiang, which will help raise up to 1.5 billion yuan and be equivalent to a 25% stake in the supermarket operator. Sanjiang also plans to issue up to 188 million yuan worth of exchangeable bonds to Alibaba, equivalent to 16.4 million of the supermarket operator’s shares.
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