Alibaba Group Holding Limited’s USD128 Million Shares Acquisition In E-House (China) Enterprise Holdings Limited

Slaughter and May, Hong Kong, advised Alibaba Group Holding Limited on the deal.

Alibaba Group Holding Limited acquired, through its wholly-owned subsidiaries, new shares constituting 21.73% of the current issued share capital of E-House (China) Enterprise Holdings Limited (E-House), a company listed on the Hong Kong Stock Exchange, in consideration of cash of HK$990 million (USD128 million).

Alibaba also applied for a whitewash waiver from the SFC from the obligation to make a mandatory general offer for the shares of E-House as a result of the acquisition. The acquisition was announced on 29 April 2021. 

Alibaba currently holds 8.32% of the issued share capital of E-House and convertible note in the principal amount of HK$1,032 million (USD133 million) which is convertible into shares representing 5.69% of the current issued share capital of E-House.

E-House and a wholly-owned subsidiary of Alibaba entered into an agreement which provides for strategic cooperation between the parties, including the provision by Alibaba to E-House of technical, product, data and operational support to enhance E-House’s digital and online marketing capabilities.

Alibaba, whose American depositary shares are listed on the New York Stock Exchange and whose ordinary shares are listed on the Hong Kong Stock Exchange, is the world’s largest online and mobile commerce company.

E-House, a company incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange, is a real estate transaction service provider in China, mainly offering real estate agency services in the primary market, real estate data and consulting services and real estate brokerage network services.

Slaughter and May’s team included Benita Yu (Picture), Partner, Vincent Chan, Associate, Jason Chan, Associate, Sam Cheung, Legal Assistant, Xiaolu Yin, Trainee.

Involved fees earner: Jason Chan – Slaughter and May; Vincent Chan – Slaughter and May; Benita Yu – Slaughter and May;

Law Firms: Slaughter and May;

Clients: Alibaba Group Holding Ltd;

Author: Sonia Carcano