SINGAPORE—Chinese Internet giant Alibaba Group Holding will pay about 312.5 million Singapore dollars ($249 million) for a minority stake in Singapore Post Ltd., the city-state’s main postal service, as part of a tie-up to create an international e-commerce logistics business.
The deal follows a string of investments by Alibaba in overseas e-commerce companies in recent years, aimed at boosting the online retailer’s ability to handle international shipments and help customers source for goods from outside China. It would also help China’s largest e-commerce company plant its flag in Southeast Asia’s burgeoning consumer markets.
Alibaba’s international expansion comes as the company is preparing to go public in New York in an initial public offering that could raise over $20 billion, possibly making it the largest IPO in U.S. history. Alibaba filed its application for a U.S. IPO in early May.