Chinese Delivery Firm Soars Record 259% After Alibaba Buys Stake

(Bloomberg) --

YTO Express Holdings Ltd. soared the most on record in Hong Kong trading after tech giant Alibaba Group Holding Ltd. agreed to increase its stake in its parent with an investment of 6.6 billion yuan ($967 million).

YTO Express Holdings closed Wednesday up 259% having earlier climbed as much as 277%. Its previous biggest daily gain was 30% in February 2018.

Parent YTO Express Group Co. said in a filing Tuesday evening that its controlling shareholder will sell 379.2 million shares at 17.406 yuan apiece. That would take Alibaba’s stake in YTO Express Group to 22.5% from 10.5%.

YTO Express Group, which is listed in mainland China, rose by the 10% daily limit to 18.37 yuan, its highest since March 2018. The stock closed Tuesday at 16.70 yuan.

The company said the deal will strengthen ties between YTO and Alibaba in areas including logistics and digital technology. It won’t result in a change in controlling shareholder, it said.

©2020 Bloomberg L.P.

With assistance from Bloomberg