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Silver Lake and Temasek Holdings Increase Investments in Alibaba's Buyback of Yahoo!

Paul, Weiss advised Silver Lake, Temasek Holdings and another investor on their increased investments of Alibaba Group Holding Limited, the largest e-commerce company in China, on its buyback of shares from American multinational internet corporation, Yahoo! in transactions valued at approximately US$7.6 billion. Paul, Weiss also advised other investors in their purchase of convertible preference shares in connection with this buyback.

In 2011, the Paul, Weiss team advised Silver Lake and Temasek on their original investment in Alibaba Group.

This financing, which was a mixture of cash, senior debt and the issuance of convertible preference and ordinary shares, is the largest-ever private financing for a private sector Chinese company and the largest non-LBO private financing for a technology company globally. The new equity financing for Alibaba Group was valued at approximately US$40 billion.

In May 2012, the two companies announced a long-term plan for Yahoo! to reduce its stake in Alibaba Group which would ultimately change the structure of their ongoing relationship. Alibaba Group, as part of an amendment to the existing technology and intellectual property license agreement, now has the right to repurchase one-half of Yahoo!'s remaining stake upon a qualifying IPO in the future.

The Paul, Weiss team, led by corporate partner Jeanette Chan, included counsel Corinna Yu.

Posted on Oct 02, 2012 
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