Alibaba Group Co., the world’s biggest e-commerce company, is expected to raise more than $2 billion in cash to finance the purchase of a majority stake in its U.S. unit, raising the firm’s 2020 earnings outlook to nearly $20 billion.
The transaction will give the company a valuation of nearly $3.3 billion, according to Bloomberg LP, citing an industry source.
Alibaba Group also said on Thursday that it has raised more than US$1.1 billion in equity financing, raising its total equity capitalization to more than a US$5.5 billion.
Investors and analysts expect the deal to close in early 2020.
Alibaba said in a statement on Thursday the deal, which is expected in the first quarter of 2020, will be subject to regulatory approvals and shareholder approval.
The acquisition is expected for an undisclosed price tag.
Alibaba, which has more than 10,000 employees worldwide, has raised about $30 billion in funding.
The company was founded in 1999 and has more annual revenue than any other U.K.-based e-retailer.
Its stock rose 6.7 percent to $7.15 in after-hours trading on Thursday.
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