China's Alibaba group has officially concluded a 7.6-billion-U.S. dollar buyback deal to repurchase a 20-percent stake in itself from Yahoo, according to an Alibaba statement.
Alibaba, China's largest e-commerce company, financed the transaction with a mixture of cash on hand, senior debt and the issuance of convertible preference and ordinary shares.
It paid Yahoo 6.3 billion U.S. dollars in cash and 800 million U.S. dollars in preference shares in Alibaba in the deal, restructuring its relations with the Silicon Valley company.
"The completion of this transaction begins a new chapter in our relationship with Yahoo," said Jack Ma, chairman and chief executive officer of Alibaba.
"We are grateful for Yahoo's support of our growth over the past seven years, and we are pleased to be able to deliver meaningful returns to our shareholders including Yahoo," he said.
The financing package is the largest ever private financing for a private sector Chinese company, according to the statement, issued late on Tuesday.
Eight international banks, including Barclays Bank and Australia and New Zealand Banking Group, provided 1 billion U.S. dollars of senior debt financing for the transaction. China Development Bank provided a parallel senior debt facility of 1 billion U.S. dollars.
Alibaba also paid Yahoo a one-time cash payment of 550 million U.S. dollars in connection with the amendment of their existing technology and intellectual property license agreement.
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