Alibaba, Yunfeng Capital To Jointly Invest About $1.22 Bln In Youku Tudou

(RTTNews) - Chinese Internet television company Youku Tudou Inc.(YOKU) said it has signed definitive agreements with a joint investment vehicle of Alibaba Group Holding Ltd and Yunfeng Capital, wherein the two companies would invest about $1.22 billion to buy Youku's Class A ordinary shares.

The purchase will include about 707.2 million newly issued shares and about 13.9 million existing Class A ordinary shares at a purchase price of $1.6944 per share, corresponding to $30.50 per American Depositary Share of the company, each representing 18 Class A ordinary shares.

With this transaction, which is expected close in the near future, Alibaba and Yunfeng Capital will indirectly hold about 16.5 percent and 2.0 percent, respectively, of the total issued and outstanding shares of the company.

After the close of transaction, Jonathan Lu, Chief Executive Officer of Alibaba, will join Youku Tudou's board of directors.

Goldman Sachs Asia L.L.C. is serving as Youku Tudou's financial advisor in the transaction. Skadden, Arps, Slate, Meagher & Flom LLP is serving as U.S. legal advisor to Youku Tudou, and TransAsia Lawyers and Maples and Calder are serving as PRC and Cayman Islands legal advisor to Youku Tudou, respectively.