Alibaba Group Holding Limited reduced its holdings of XPeng Motors‘ American Depositary Shares (ADS) after terminating the director appointment agreement with the company.
On March 20 local time, XPeng Motors disclosed in a filing submitted to the U.S. Securities and Exchange Commission that Taobao China Holding Limited, a subsidiary of Alibaba Group Holding Limited, plans to sell 33 million shares of XPeng Motors ADS with a total value of approximately $314 million. The announcement indicated that the ADS being sold were acquired as pre-IPO investments on September 12, 2019.
It is worth mentioning that this is not the first time Alibaba Group Holding Limited has reduced its stake in XPeng Motors. In December last year, Alibaba sold 25 million ADS of XPeng Motors, totaling 50 million ordinary shares, reducing its shareholding from 12.49% to 9.24%.
On June 22, 2021, Taobao China, He Xiaopeng – Chairman and CEO of XPeng Motors, and XPeng Motors entered into an agreement. The agreement includes He Xiaopeng’s commitment to Taobao China that at any time after the effective date of the listing, Taobao China will nominate Alibaba Group Holding Limited candidates according to the outline and details of the organizational charter.
On March 19, 2024, XPeng Motors released an announcement titled “Termination of Agreements with Taobao China and Resignation of Non-Executive Director,” stating that all relevant agreements will be terminated and no longer have any effect starting from March 19, 2024 (“Termination of Agreements”).
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