The Alibaba Group is seeking a loan of $3 billion, with plans to purchase back its own shares currently in possession of Yahoo! Inc.
In order to collect the aforementioned sum, the company is reportedly planning to start negotiating with a selection of banks. The list of the banks willing to assist Alibaba Group includes ANZ, Credit Suisse, DBS, Deutsche Bank, HSBC and Mizuho Corporate Bank.
The paid up capital of Yahoo! in Allibaba Group stands currently at $13 billion, however, the Alibaba Group is abstaining from giving any further information regarding its divestment move.
Meanwhile, Yahoo! executives (including chairman Roy Bostock) may require more time to review this disinvestment policy enforced by the Alibaba Group, especially when they have just recently hired a new CEO for the company.
Yahoo has been making constant endeavours to upgrade its struggling position in Asia, including restructruing its current investments by selling out the unprofitable units. The Wall street Journal reported that the act of disinvestment by Alibaba has been done primarily to delist Alibaba.com and list the parent firm, but analysts say that the suppositions may not be true as the move will prove to be very expensive for the company.