DST Global takes part in $1.6bn investment in China’s Alibaba
27 Sep '11
DST Global, headed by Yury Milner, has taken part in $1.6bn investment into the largest Chinese online-retailer Alibaba Group, news agency Forbes.ru reports.
The consortium of investors was reportedly led by DST Global, US’ Silver Lake and Chinese fund Yunfeng Capital. Singapore fund Tamasek also participated in the pool but to lesser degree.
Mr. Milner’s representative has confirmed that DST had participated in the pool but refused to specify the amount of investment.
The deal has been structured in the form of buying shares under the offer from Alibaba employees and co-owners. Alibaba is a non-public company. The share, purchased by the investors, is less than 5%. Cost of the whole Alibaba business is estimated at $32bn. It has become known, that the largest Alibaba’s shareholder – US’ Yahoo – is not selling its shares.
Alibaba Group owns websites of online stores Alibaba.com and Taobao.DST Group is Alisher Usmanov. DST became known after one of the most successful deals in the history of venture investment – in 2009 the fund invested $200m into Facebook. The price was calculated from the total company assessment of $10bn. Since then the social network’s capitalization has grown by almost ten times. The Russian part of DST business was renamed into Mail.ru Group last year. Mail.ru Group has carried out a successful IPO at the London Stock Exchange.
DST Global, together with Mail.ru Group, own over 10% shares in Facebook, about 8% preference shares in the discount service Groupon, 5.8% shares in gaming service Zynga Inc. In August 2011 Global and Kleiner Perkins invested $400m into Twitter. Earlier in 2011 the fund had also invested into Chinese Internet-retailer 360buy.com and the European music portal Spotify.