Alibaba's Taobao China completed the sale of 33 million Xpeng ADSs on March 22, according to a Hong Kong stock exchange announcement.
(Image credit: CnEVPost)
Alibaba (NYSE: BABA, HKG: 9988) completed its latest planned reduction of its stake in Xpeng (NYSE: XPEV), letting the stake fall to less than 5 percent.
Alibaba's Taobao China completed the sale of 33 million American Depositary Shares (ADSs) of Xpeng on March 22, according to a Hong Kong stock exchange announcement today.
Each ADS represents two Xpeng Class A ordinary shares, and the average price per ordinary share in the transaction was about $4.76, with Alibaba cashing out $314 million.
Prior to the reduction, Alibaba held 141,918,464 ordinary shares of Xpeng, representing a 9.23 percent stake.
Following the completion of the reduction, Alibaba's ownership of Xpeng ordinary shares decreased to 75,918,464 shares, or 4.94 percent, according to the announcement.
An SEC filing on March 20 showed that Taobao China plans to sell 33 million shares of Xpeng's ADSs, with a total value of about $314 million.
Alibaba acquired those shares in a September 2019 Pre-IPO investment, according to the SEC filing.
The move is Alibaba's own strategic realignment as it shrinks its non-e-commerce related businesses across the board, and the reduction does not involve just one company, Xpeng, local media outlet Caijing quoted the electric vehicle (EV) maker as saying in a March 21 report.
The reduction is not based on a change in Alibaba's attitude toward Xpeng's business and development prospects, and will have little impact on the company's business, Xpeng said.
The two companies will continue to cooperate in research and development, marketing and service systems, and Alibaba and Alibaba Cloud remain to be among Xpeng's most important strategic partners, the EV maker said.
Xpeng launches new P7i variant with scissor doors, offers $5,550 limited time discount
