CIC invests $2bn in Alibaba

A group of Chinese investors led by sovereign wealth fund China Investment Corporation (CIC) invested roughly US$2 billion in Chinese internet retailer Alibaba Group Holdings, The Wall Street Journal reported, citing sources close to the transaction. The move follows Alibaba’s share buyback from Yahoo (YHOO.NASDAQ, YHO.FRA) announced earlier this week. Buyout funds Boyu Capital, Citic Capital and China Development Bank’s PE branch were among those that invested in China’s e-commerce giant. Alibaba’s recent buyback of its shares included acquisition of about half of Yahoo’s 40% share holding for roughly US$6.3 billion cash, US$800 million in preferred shares in Alibaba and ‪amendments to intellectual-property agreements valued at US$550. Yahoo still has a 23% share holding in the company. Alibaba has the right to acquire 50% of the shares now held by Yahoo.