Read as much as you want on BostonGlobe.com, anywhere and anytime, for just 99¢.

Patriots Live

17

16

Final

China fund may add $2b to finance Alibaba share buyback

The China Investment Corp. is in advanced talks to add as much as $2 billion into the Alibaba Group to hlep finance the Internet company’s efforts to buy back a stake from Yahoo, a person briefed on the matter said Thursday.

The Chinese Investment Corp., known as CIC, a $200 billion Chinese sovereign wealth fund, is one of several potential partners from whom Alibaba would raise money to pay for the stake repurchase. On Sunday, Alibaba announced a long-awaited deal to buy back half of Yahoo’s 40 percent stake in the company for $7.1 billion.

Continue reading below

To finance the purchase, Alibaba is raising about $4.6 billion in total. The Chinese Internet company is holding talks with a number of other firms.

The pact with Yahoo values Alibaba at about $35 billion, although that figure could rise if the Chinese company is able to raise financing at a higher valuation.

Alibaba has undertaken a number of moves that could lead to its transformation, including an initial public offering down the road. On Thursday, Alibaba was finalizing the takeover of its publicly traded subsidiary, Alibaba.com.

But the biggest move has been securing an agreement with Yahoo over the repurchase of the stake.

Loading comments...
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of BostonGlobe.com
Marketing image of BostonGlobe.com