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Alibaba Group said on Tuesday it is planning to spin off Cainiao Smart Logistics Network Ltd., the logistics arm of its ecommerce empire, through an initial public offering (IPO) in Hong Kong.
The move is part of one of the most radical shake-ups in Alibaba’s history. In March, the company said it will split its structure into six business units, the majority of which will be able to raise outside funds and go public.
Alibaba, which holds a 69.54 perecent stake in Cainiao, further added that it will continue to hold more than 50 percent of shares in Cainiao and it will remain a subsidiary of the company after the spin-off.
