Chinese e-commerce heavyweight Alibaba Group will take a 14 per cent stake in Chinese STO Express as part of a US$693 million deal.
The agreement will give Alibaba access to STO’s ever-growing networking and is also set to give STO more funds to grow its fleet and facilities.
According to Reuters, STO Express said in a statement on Monday its controlling shareholder planned to set up a new subsidiary that will own a 29.9 per cent stake in the courier firm.
The news agency reported Alibaba will invest 4.66 billion yuan ($693.44 million) for a 49 per cent stake in the new subsidiary, and by extension hold more than 14 per cent of STO Express.
Alibaba, in a separate statement, confirmed its investment in “one of the top five express delivery companies in China”. “We will deepen our existing collaboration with STO in technology, last-mile delivery across China and New Retail logistics,” it said.
STO Express is a fast expanding express carrier in China and it will offer Alibaba further access to key international destinations. STO has also recently grown its network to Prague and Milan and is reportedly set to add Budapest and other links.