Yahoo is about to raise approximately $150 million by selling 57.48 million Alibaba.com shares, according to a term sheet obtained by Reuters earlier on Monday. The Internet giant is selling the large chunk of shares at HK$19.80-HK$20.30 each, which represents a 4-6.4% discount to the stockâ€™s closing price of HK$21.15 on Monday and the entire 1.14 percent stake Yahoo held in Alibaba.com, which is Chinaâ€™s largest B2B marketplace.
Yahoo announced a little over 4 years ago that it would purchase a 39% stake in the e-commerce giantâ€™s parent company for US $1 billion â€“ which it will be retaining â€“ plus Yahooâ€™s Chinese assets (worth about US $700 million). Alibaba in return took charge of Yahoo! China, while Alibabaâ€™s founder Jack Ma remained in charge of Alibaba Group. Yahoo China recently underwent a significant restructuring, during which its popular classified listings service Koubei was taken and moved to Taobao.com.