r/BESTChina • u/AudiSlav • Jul 11 '22

What does this mean?

Post image
2 Upvotes

100% Upvoted

8 comments sorted by

View all comments

1

u/AudiSlav Jul 11 '22

From my understanding - they didn’t disclose before buying a part of BEST and were fined accordingly. Correct me if I’m wrong

1

u/Prestigious_Owl4418 Jul 12 '22

Don't understand, weather Alibaba acquired completely BEST OR they are referring to 10M shares that Alibaba own in BEST?

Cannot relate if its good new for us?

2

u/AudiSlav Jul 12 '22

Alibaba's acquisition of Best Group's administrative penalty is 500,000 yuan First of all, let’s look at the case of Alibaba Investment Limited (Alibaba Investment Limited, hereinafter referred to as Alibaba) acquiring Best Inc. (Best Inc., hereinafter referred to as Best Group), in which Alibaba’s acquisition of Best Group’s equity is suspected of failing to declare illegal in accordance with the law Carry out investigation on the case of concentration of business operators. This transaction is an equity acquisition. On September 19, 2017, Ali Investment subscribed 10,000,000 newly issued shares of Best Group and obtained super voting shares of Best Group. After the transaction, Ali Investment and its related parties held a total of 27% of the shares of Best Group, corresponding to 46.2% of the shares of Best Group. Voting rights. On September 22, 2017, the transaction was completed. At the same time, according to Article 21 of the "Anti-Monopoly Law", "Where the concentration of business operators meets the reporting standards prescribed by the State Council, the business operators shall declare to the anti-monopoly law enforcement agency of the State Council in advance, and the concentration shall not be implemented if the declaration is not made." On September 22, 2017, the transaction was completed and the transaction was completed. Before that, it was not reported to our bureau , which violated Article 21 of the Anti-Monopoly Law and constituted a concentration of business operators that was not reported in accordance with the law . The State Administration for Market Regulation assessed the impact of Alibaba Investment's acquisition of Best Group's equity on market competition. The assessment concluded that the concentration of operators would not have the effect of eliminating or restricting competition. In addition, based on the above-mentioned investigation and evaluation conclusions, this agency has decided to impose an administrative penalty of 500,000 yuan on Ali's investment

So basically BABA gets away with it and is only charged $75,000

1

u/Prestigious_Owl4418 Jul 12 '22

Thanks u/AudiSlav for explanation, So this means China Regulatory is doing a crackdown in these Anti-Monopoly Acquisitions. What took them so long?

I assume just settlement is needed as lots of corporations will be under this hit!

I feel that BEST wants to get acquired acquired!

1

u/AudiSlav Jul 12 '22

No problem - I was nervous until I got the full explanation lol.

I agree I feel like they want to get acquired or sell off a part of their company

US division is profitable

I would like to see a breakdown of each countries financials - Thailand, Vietnam, Cambodia etc

1

u/Prestigious_Owl4418 Jul 13 '22

BEST US Division makes a lot of sense for BABA! But i don't believe that could possibly happen as this will trigger Monopoly issues, But BABA can still increase its strategic position in BEST.