Alibaba to buy stake in Lazada from Rocket Internet

Founded in 2012, Lazada is a one-stop e-commerce gateway for local and international sellers, brands and customers in six Southeast Asian markets – Indonesia, Malaysia, the Philippines, Singapore Thailand and Vietnam.
Lazada and Alibaba also entered a transaction that includes Alibaba’s investment of $500 million in Lazada, which will make Alibaba the controlling shareholder of Lazada.
The transaction values Lazada at $1.5 billion.
Rocket Internet’s remaining stake after the transaction, taking into account Alibaba’s new investment, is 8.8 per cent.
The valuation of Rocket Internet’s stake represents a 15-times multiple of Rocket Internet’s total invested capital of 18 million euros (Bt720 million).
Shareholders, including Rocket Internet, have also given Alibaba the right to purchase, and the shareholders the right to sell collectively, their remaining stakes at fair market value within a 12-to-18-month period after the closing of the transaction.
Oliver Samwer, chief executive of Rocket Internet, said yesterday that this transaction was a key milestone for Lazada, as it underlined its position as the leading online platform in Southeast Asia.
“Alibaba as the new major shareholder is further strengthening this position and provides the basis for significant future growth given Alibaba’s strong strategic position in the region.
“We are looking forward to working with Alibaba and the existing Lazada shareholders to support Lazada in building the leading e-commerce franchise in Southeast Asia.”
Maximilian Bittner, CEO of Lazada, said the company was very excited about joining forces with Alibaba and saw significant synergies that would bring great benefits to its customers, sellers, brands and the broader e-commerce ecosystem in Southeast Asia.
“The transaction will help us accelerate our goal to provide the 550 million consumers in the region access to the broadest and most unique assortment range.”