Alibaba may take Hong Kong-listed unit private for $2.3 bn

Chinese e-commerce group Alibaba may take its Hong Kong-listed unit Alibaba.com Ltd private at about the price of its 2007 initial public offering for about HK$18 billion, a Hong Kong business daily reported on Thursday, citing sources.

The newspaper said Alibaba might offer HK$13.50 each for all outstanding shares it did not already own in the unit, equivalent to the November 2007 IPO price.

Alibaba officials declined to comment.

The offer would represent a 46% premium over the last closing price of the Hong Kong-listed unit, the paper said. Alibaba Group owns 73% of the listed unit.

Alibaba plans to take its Hong Kong-listed unit private, two sources familiar with the matter said earlier this month, as part of a complex deal that would strengthen founder Jack Ma's control and give key stakeholder Yahoo cash and a direct stake in one of Alibaba's operating businesses.

Talks between Yahoo and Alibaba over the US Internet giant's Asian assets have hit an impasse, throwing their plans for a $17 billion tax-free asset swap into question, according to sources briefed on the situation this week.