FILE PHOTO: The logo of Alibaba Group is seen inside the company's newly-launched office in Kuala Lumpur, Malaysia June 18, 2018. REUTERS/Lai Seng Sin HONG KONG (Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd (BABA.N) on Wednesday said it has agreed to acquire a minority stake in China’s Focus Media Information Technology Co Ltd 002027.SZ to tap into the digital marketing sector. Alibaba will acquire about 6.62 percent in Focus Media for 9.63 billion yuan (1.10 billion pounds)and possibly another 5.0 percent stake in the next 12 months, it said in a statement. The e-commerce firm would also invest $511.1 million in an entity controlled by Focus Media’s chairman Jason Jiang, by subscribing to newly issued shares, it said. Focus media, which was founded in 2003, has its main business in China’s interactive digital media and online advertising sectors. Upon completion of the deal, Alibaba will become Focus Media’s strategic investor, the Shenzhen-listed firm said in a separate exchange filing. ($1 = 6.7191 Chinese yuan renminbi) Reporting by Twinnie Siu in Hong Kong and Lee Chyenyee in Singapore; Editing by Elaine Hardcastle
Alibaba is to buy a 6.62% stake for CNY9.63bn ($1.42bn) in China's Focus Media Information Technology, and potentially a further 5% stake over the next 12 months, as it seeks to tap into the digital market sector.