- Alibaba Group Holding Ltd (NYSE:BABA) and the Jiangsu provincial government-led consortium are nearing a deal to acquire a stake in the retail arm of Chinese billionaire Zhang Jindong’s Suning empire, Bloomberg reports.
- Zhang will no longer have control of the company after the deal.
- Suning.com’s shares came to a halt on June 16, pending a significant matter announcement.
- The stock tumbled to an almost eight-year low in Shenzhen after a Beijing court froze 3 billion yuan ($464 million) worth of shares held by Zhang. The amount represented 5.8% of Suning.com. Creditors agreed to extend a 2.89 billion yuan bond for Suning Appliance Group Co., owned by Zhang and fellow co-founder Bu Yang.
- State-backed investment is likely to relieve liquidity tightness aggravated by Suning’s links to China Evergrande Group, the world’s most indebted property developer.
- Zhang waived his right to a 20 billion yuan payment from Evergrande in September, putting pressure on Suning’s cash flow.
- Price action: BABA shares traded lower by 1.31% at $225.6 in the premarket session on the last check Tuesday.
3 Stocks Insiders Are Buying
When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
