By Michael Calia
Chinese online map company AutoNavi Holdings Ltd. said it has
agreed to be bought out by Alibaba Group Holding Ltd.
AutoNavi on Friday said it agreed to the deal--worth $21 an
American depositary share, or $1.13 billion--which was first
proposed in February. The price represents a 27% premium over the
company's ADS closing price Feb. 7, which was the last trading day
before the go-private offer was announced.
Alibaba already owns about 28% of AutoNavi, buying the stake in
May of last year for $294 million.
The deal is expected to close in the third quarter, AutoNavi
said.
Alibaba--which is preparing for its much-hyped initial public
offering later this year in New York--has been on a buying spree
lately as it competes with rival Chinese e-commerce company Tencent
Holdings Ltd. over mobile users' spending habits.
Write to Michael Calia at michael.calia@wsj.com
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