Alibaba offers to buy AutoNavi in $1.58B deal

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Associated Press

Posted on February 10, 2014 at 8:01 AM

Updated Monday, Feb 10 at 8:02 AM

NEW YORK (AP) — Alibaba Group Holding Ltd. is offering to take Chinese digital mapping and navigation company AutoNavi private in a deal that values the entire business at approximately $1.58 billion.

AutoNavi's stock surged more than 26 percent in Monday premarket trading.

AutoNavi said that it plans to form a committee of independent directors to consider the proposal.

Alibaba said in a regulatory filing that it will pay $21 per American depository share, or $5.25 per ordinary share. Each ADS represents four ordinary shares.

The filing said that Alibaba's proposal assumes about 300.4 million outstanding ordinary shares of AutoNavi Holdings Ltd.

Alibaba already owns approximately 28 percent of AutoNavi's outstanding stock. The company said it plans to pay for the deal with available cash. Its offer isn't subject to a financing condition.

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