Delisting, Alibaba Wants More?

There is a fairy tale called Alibaba and forty thieves. The hero of Alibaba has a classic phrase "open sesame".

In 2012, many people laughed and said that "opening sesame" would become a "privatization open door" because Alibaba group's only listed company had to withdraw from the capital market.

The reason for privatization is that the value of the company is undervalued, and privatization aims to contribute to the strategic pformation of Alibaba.

Alibaba group boss Ma Yun once said: "Alibaba (B2B) is a big brother, is a mud leg, and his younger brothers and sisters all rely on him to come to school; Taobao is a sister, can buy the flower skirt with the money given by the elder brother, has graduated from junior high school, will be studying in Fudan University, and the old three is Alipay, only to go to primary school, but it has the most ambition to carry the burden of supporting the family in the future, the elder brother decides to spend all costs on Harvard."

On the evening of February 21st, Alibaba announced in the HKEx that the Alibaba group of the parent company proposed to privatize Alibaba network limited by way of agreement.

The announcement said the proposal will be implemented in a planned way.

The plan will stipulate that if the plan comes into effect, the planned shares will be cancelled, and the offeror will exchange the cancellation price of HK $13.50 per share for each planned shareholder.

This price was also the opening price of Alibaba when it was listed.

Many consumers are familiar with Alibaba because of its well-known Taobao, Tmall mall and Alipay business, and more enterprises are in contact with Alibaba because of its leading position in the consumer goods industry as the largest B2B trading platform in the country.

Alibaba's B2B business has provided wholesale, trading and cooperation electronic trading platform for many small and medium-sized garment enterprises in China. It has also developed more well-known Taobao and Alipay because of its listing and financing in Hongkong. With the rapid development of B2C, many B2B businesses once fell into a low ebb. However, Alibaba's behavior today once again made B2B the focus of media attention. B2B

For this purchase price, Ma said: "when we listed, we only got 1 billion 700 million dollars, but privatization costs US $about 2000000000. It looks like a losing business. Some people suggest that we can buy it back at a lower price.

But this is not the style of Alibaba. "

Since it is not the style of Alibaba, why do we need to privatize B2B? Alibaba said in its announcement that promoting the privatization of Alibaba group is the core factor of its listed subsidiary (B2B). It is aimed at giving the small shareholders a chance to realisse their investment returns during the strategic pformation and upgrading of Alibaba, and the strategic pformation may slow the growth of revenue in the medium and short term, and affect earnings expectations.

Ma Yun explained the privatization in an e-mail to Alibaba employees: "with the further economic and environmental situation in the world, especially in the face of tremendous pressure on raw materials, exchange rate and labor costs, B2B's business model is facing enormous challenges and needs to accelerate pformation and upgrading.

Local minor adjustment has no way to fundamentally improve B2B.

It is because of the above thinking that we are responsible for the B2B shareholders, prompting us to make a decision to privatize B2B and make a comprehensive adjustment, reform and upgrading of our business in order to better serve our customers.

In this regard, whether Ma Yun or any member of the Alibaba, the privatization of B2B is classified as B2B pformation, but there are more people questioned that the Alibaba's behavior is to deal with the 40% stake in YAHOO group held by buyback.

Alibaba launched a project called Long March (Long March) a year ago to buy YAHOO shares.

Naming the project "Long March" shows that Ma Yun foresees the complexity of the process.

Now such a situation occurs, many people say that if YAHOO can keep this share, it will undoubtedly benefit from the favorable development brought by the privatization of Alibaba B2B.

Is B2B finished or outburst?

Many people say that to a certain extent, the era of B2B has ended.

Alibaba has made many attempts on the development of B2B, but it is not very successful, and the result is not satisfactory.

Since pformation has been very difficult, it is better to withdraw it.

It is more convenient and effective to reshape or reorganize assets within Alibaba.

Now, in the face of such a big move of Alibaba, many people have come out to say that B2B e-commerce may be a new outbreak.

This report shows that many people in the industry are optimistic about the prospects of B2B, but there is no denying that B2B business is in urgent need of pformation.

Take Alibaba as an example, about 60% of sales come from small and medium-sized export enterprises in China, and these enterprises have been affected by factors such as RMB appreciation, rising costs and shortage of funds in recent two years, resulting in a lot of pressure on Alibaba.

At the same time, according to the analysis of relevant reports, the same industry has increased investment in e-commerce, so that emerging e-business platforms in all walks of life are emerging. Most of these platforms have strong industry characteristics, attach importance to background management and docking with traditional industries. Compared to the existing B2B platforms, the user diversion caused by the lack of business innovation is a foregone conclusion.

To sum up, in view of the urgent need for profit and growth of listed companies, it is difficult to realize the strategy of pformation and upgrading, which may be the core reason for the privatization.

The next step is how Alibaba will go. Many people expect to restructure their internal assets, and Alibaba is more likely to seek overall listing.

Despite the current assets of Alibaba group, it is divided into seven companies, including Alibaba, Taobao, Tmall, Panxi, Alipay, Ali cloud and Ali cloud mobile phone. But many people in the industry have analyzed that the core of Alibaba is still Taobao. After recovering the B2B share, how to integrate Taobao and its assets to achieve the overall listing of the group is the next step for Ma Yun to consider.

60% of respondents agree with YAHOO.

Everyone says that the eyes of the masses are bright. So what is the ultimate goal of Alibaba privatization of B2B business in the eyes of the masses? 36.56% of the respondents agreed that their ultimate goal was to "buy back the shares of Ali held by YAHOO and take control of the company"; 29.03% of respondents agreed to "clear YAHOO shareholding and pave the way for listing their subsidiary companies", which shows that 60% of respondents believe that the Alibaba delisting is more or less related to YAHOO.

19.35% of respondents said they were "seeking the overall listing of Alibaba", but 15.05% of respondents said they were not clear about the situation, and there may be other reasons.

Under investigation

"Formerly

For the development of B2B, ye Tan also has its own view: "B2B is now the main target of small and medium-sized manufacturing exporters, because the international environment is bad, these enterprises are now turning to domestic demand, while Alibaba, whether Taobao or Alipay, also need to build domestic demand brand, so Alibaba is now out of Hongkong stock market, and whether it will turn to domestic A shares is also one of its future options."

And people with such views are not in the minority, and they all think that Alibaba, with Taobao and Alipay, will have a lot of imagination for the development of the whole capital market if the future is listed in A shares as a whole.

In the past, many companies wanted to raise funds, and many companies began to sing the listing. Now the delisting of Alibaba seems to have opened up another scene for financing.

As a well-known financial commentator Lin Yun said, "listing is the primary tactic, and delisting is advanced tactics.

Just got the $3 billion loan from the six banks, and this time, "closing the door to fight tiger" also shows the extraordinary strategy of Ma Yun because he bought the valuable shares with the least valuable money when the money was the most worthless. This capital war looks very interesting.