<p>Alibaba Group Holding Ltd plans to buy at least 10% of Yunda Holding Co Ltd , marking the e-commerce giant's fifth investment in a large courier, two people with knowledge of the matter told Reuters.</p>.<p>Alibaba is looking to buy the stake from Yunda's controlling shareholders - founding couple Nie Tengyun and Chen Liying - who own 52.19% of Yunda through their wholly owned firm Shanghai LuoJieSi Investment Management, said one of the people. At the current market price, the stake would be worth at least $790 million.</p>.<p>The other person said China's dominant e-commerce firm could go beyond 10% and buy up to 15% of Shenzhen-listed Yunda.</p>.<p>The people declined to be identified as they were not authorised to speak with media.</p>.<p>Under Chinese regulations, a stake of over 5% in a domestically listed company can be sold at a discount of as much as 10% to the firm's share price on the last trading day prior to a deal.</p>.<p>Based on Monday's closing price, the deal could fetch at least $790 million, as Yunda has a market capitalisation of about $8.78 billion.</p>.<p>Alibaba has already bought a small stake in Yunda which is below threshold for disclosure, said two other people with knowledge of the matter.</p>.<p>Alibaba declined to comment. Yunda did not respond to a request for comment.</p>.<p>The move would mark another step forward in Alibaba's efforts to gain a bigger say in China's fragmented but fast-growing express delivery industry.</p>.<p>Domestic delivery firms dispatched 63 billion parcels last year, up 24% from 2018, while revenue grew 23% year-on-year to 745 billion yuan ($104.95 billion), data from the State Post Bureau showed in January.</p>.<p>But many firms are under pressure to boost logistics infrastructure and upgrade services to maintain market share as online retail continues to grow and amid continued price competition.</p>.<p>Alibaba's move also comes one year after it took a 14.65% stake in another large express delivery firm, STO Express Co Ltd , through a 4.66 billion yuan deal.</p>.<p>STO's controlling shareholder later agreed to grant Alibaba an option to purchase another 31.25% stake in three years.</p>.<p>Before STO, Alibaba acquired minority stakes in three other large Chinese couriers - YTO Express Group Co Ltd, Best Inc and ZTO Express (Cayman) Inc.</p>.<p>Shanghai-based Yunda, which went public through a backdoor listing in 2016, is one of several couriers that work with Alibaba under Cainiao, the e-commerce firm's logistics division launched in 2013.</p>.<p>Cainiao provides software and shares data with warehouses, carriers and other logistics firms that help deliver packages to shoppers on Tmall and Taobao, Alibaba's largest e-commerce sites. </p>
<p>Alibaba Group Holding Ltd plans to buy at least 10% of Yunda Holding Co Ltd , marking the e-commerce giant's fifth investment in a large courier, two people with knowledge of the matter told Reuters.</p>.<p>Alibaba is looking to buy the stake from Yunda's controlling shareholders - founding couple Nie Tengyun and Chen Liying - who own 52.19% of Yunda through their wholly owned firm Shanghai LuoJieSi Investment Management, said one of the people. At the current market price, the stake would be worth at least $790 million.</p>.<p>The other person said China's dominant e-commerce firm could go beyond 10% and buy up to 15% of Shenzhen-listed Yunda.</p>.<p>The people declined to be identified as they were not authorised to speak with media.</p>.<p>Under Chinese regulations, a stake of over 5% in a domestically listed company can be sold at a discount of as much as 10% to the firm's share price on the last trading day prior to a deal.</p>.<p>Based on Monday's closing price, the deal could fetch at least $790 million, as Yunda has a market capitalisation of about $8.78 billion.</p>.<p>Alibaba has already bought a small stake in Yunda which is below threshold for disclosure, said two other people with knowledge of the matter.</p>.<p>Alibaba declined to comment. Yunda did not respond to a request for comment.</p>.<p>The move would mark another step forward in Alibaba's efforts to gain a bigger say in China's fragmented but fast-growing express delivery industry.</p>.<p>Domestic delivery firms dispatched 63 billion parcels last year, up 24% from 2018, while revenue grew 23% year-on-year to 745 billion yuan ($104.95 billion), data from the State Post Bureau showed in January.</p>.<p>But many firms are under pressure to boost logistics infrastructure and upgrade services to maintain market share as online retail continues to grow and amid continued price competition.</p>.<p>Alibaba's move also comes one year after it took a 14.65% stake in another large express delivery firm, STO Express Co Ltd , through a 4.66 billion yuan deal.</p>.<p>STO's controlling shareholder later agreed to grant Alibaba an option to purchase another 31.25% stake in three years.</p>.<p>Before STO, Alibaba acquired minority stakes in three other large Chinese couriers - YTO Express Group Co Ltd, Best Inc and ZTO Express (Cayman) Inc.</p>.<p>Shanghai-based Yunda, which went public through a backdoor listing in 2016, is one of several couriers that work with Alibaba under Cainiao, the e-commerce firm's logistics division launched in 2013.</p>.<p>Cainiao provides software and shares data with warehouses, carriers and other logistics firms that help deliver packages to shoppers on Tmall and Taobao, Alibaba's largest e-commerce sites. </p>