| During2011to2012, the overseas listed companies made a privatization wave ofcapital market. Different from those domestic enterprises in line to land A-share market,represented by little sheep, SNDA network, Alibaba.com and Focus Media, manyoverseas listed companies chose privatization.In western countries with developed capital market, going private is common forcapital operation. But there are few listed companies choose privatization in securitiesmarket of China. Held in November2013, the3rd Plenary Session of18th decided toimplement registered stock distribution system in future. Registration system will allowissuers just need to open the corresponding data and report in accordance with the law,securities regulators to form review of its content, not the material qualification. It meansthe shell resource will no longer be precious to the listed company. With the developmentof Chinese securities market in future, going private will become normal in domesticcapital market, and will be a common choice for the listed companies. In the backgroundof financial reform in China, the development of Chinese capital market will be graduallyin-depth and mature. Therefore, it’s a great significance for improving the efficiency andeffectiveness of capital market to analyze the decision-making process, characteristics ofprivatization.This paper is based on the case of Alibaba.com. Alibaba.com (B2B) on November6,2007listed in Hong Kong. Alibaba Group in2011to review the company’s strategicdevelopment, eventually privatized group for B2B business, June20,2012, officiallydelisted Alibaba.com. This paper analyses and summarizes Alibaba.com’s strategydecision, including privatisation, motivations and characteristics. Analysing the timing ofprivatisation, the price of share buyback, the choice of capital source investors. This casecan provide the reference for overseas listed companies and the delisting of listedcompanies in China. |
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