23 Sep 2011 09:51

Sportswear manufacturer Dongxiang to invest $100 mln in Alibaba

Beijing. September 23. INTERFAX-CHINA - Hong Kong Stock Exchange-listed China Dongxiang (Group) Co. Ltd., a Beijing-based sports manufacturer, is set to invest $100 million in China's e-commerce giant Alibaba Group Holdings Ltd. (Alibaba), Dongxiang announced Sept 23.

Dongxiang will make the investment through its wholly-owned subsidiary Bright Pacific, which is a limited partner (LP) of Yunfeng Funds, a venture capital (VC) fund co-founded by Jack Ma, Alibaba Group's chairman. The deal is anticipated to be completed by the end of the year.

Dongxiang's directors believe that the equity position in the e-commerce powerhouse is in the company's best interest, according to a Dongxiang filing with the Hong Kong bourse. Additionally, online game developer Giant Interactive Group Inc. (Giant Interactive) announced Sept. 22 that it will invest $50 million in Alibaba Group via Yunfeng Funds.

Shi Yuzhu, Giant's chairman and chief financial officer (CFO), is also a co-founder of Yunfeng Funds.

- RL