Chinese online map company AutoNavi Holdings Ltd. said it has
agreed to be bought out by Alibaba Group Holding Ltd.
AutoNavi on Friday said it agreed to the deal--worth $21 an
American depositary share, or $1.13 billion--which was first
proposed in February. The price represents a 27% premium over the
company's ADS closing price Feb. 7, which was the last trading day
before the go-private offer was announced.
Alibaba already owns about 28% of AutoNavi, buying the stake in
May of last year for $294 million.
The deal is expected to close in the third quarter, AutoNavi
said.
Alibaba--which is preparing for its much-hyped initial public
offering later this year in New York--has been on a buying spree
lately as it competes with rival Chinese e-commerce company Tencent
Holdings Ltd. over mobile users' spending habits.
Write to Michael Calia at michael.calia@wsj.com
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