RDIF, MegaFon, Mail.Ru, Alibaba to set up social commerce JV
MOSCOW, Sep 11 (PRIME) -- The Russian Direct Investment Fund (RDIF), mobile operator MegaFon, Internet company Mail.Ru Group, and Chinese giant Alibaba Group have announced their strategic partnership, under which they will establish a joint venture in the social commerce sphere in Russia and the CIS, the fund and MegaFon said on Tuesday in statements.
УWithin the framework of the partnership, there will be created a joint venture on the basis, among others, of the current business of AliExpress in Russia. The parties will merge strategic assets and invest new capital, management, resources, and expertise into it,Ф the fund said.
Under the deal, Alibaba Group will make AliExpressТs business in Russia as a part of the new joint venture, which will comprise current local and cross-border operating assets of Alibaba Group in Russia, including online commerce platform AliExpress and local business-to-customer floor Tmall. Alibaba Group will later invest money and other resources in the joint venture to maintain its work.
The RDIF will become a strategic participant of AliExpress Russia by purchasing a 13% stake through investments and an acquisition of an additional interest in the joint venture from Alibaba Group.
MegaFon will sell its 10% in Mail.Ru Group to Alibaba Group in exchange for 24% in AliExpress Russia.
Mail.Ru Group will also hand over to the joint venture its e-commerce business Pandao, money, and distribution in a format of integration with its products. Mail.Ru Group will receive a 15% stake in AliExpress Russia.
Alibaba Group will have 48% in AliExpress Russia.
AliExpress Russia and Mail.Ru Group will also sign an agreement on strategic cooperation, which includes, among others, exchange in traffic and product initiatives.
The deal is expected to be closed in JanuaryЦMarch 2019.
The joint venture will work in all e-commerce segments, including cross-border and local marketplaces, as well as own direct sales.