Alibaba seeks $2.3B from shareholders for Yahoo deal

Chinese Internet giant relying on existing shareholders such as Temasek Holdings to partly fund shares buyback from Yahoo but partners yet to commit, report states.

Alibaba Group is in discussions with existing shareholders, including Singapore's Temasek Holdings, to raise about US$2.3 billion to help fund its buy back of 20 percent shares from Yahoo.

According to a report by Reuters on Monday, the Chinese e-commerce service provider is looking to generate the amount through the issuance of equity to these shareholders, one unnamed source revealed. A second source confirmed these discussions are taking place, but said Temasek had yet to make a final decision regarding the investment.

Temasek Holdings had already been in talks with the Chinese company to fund its move to reclaim the 40 percent stake Yahoo owns in in October last year.

When contacted by the news agency, Alibaba was not available for comment while a Temasek spokesperson declined to comment.

On Monday, Yahoo announced that it had agreed to sell 20 percent of its 40 percent stake in Alibaba back to its Chinese partner for US$7.1 billion, with provisions in place to sell another 10 percent should the e-commerce giant decide to embark on an initial public offer (IPO).