Alibaba is spending almost USD 520 million on autonomous driving tech. Its subsidiary Alibaba (China) Technology Co disclosed on Tuesday with the Shenzhen Stock Exchange that it has signed agreements to buy 222.9 million shares of smart transportation provider China TransInfo from its three shareholders at RMB 16.12 (USD 2.3) apiece.
China TransInfo, which was set up in 2000 in Beijing, said its in-house technologies have been used by automakers including BAIC BJEV and Great Wall Motors to provide warnings on conditions such as wet roads. TransInfo’s tech covers a full suite of vehicular communication systems. By allowing the car to interact with other vehicles, infrastructure, or road conditions, these systems encourage safer and better-informed driving.
This investment will allow Alibaba (China) Technology to have a 15% stake in TransInfo. Alibaba’s Taobao and Tmall together hold an 86% stake in Alibaba (China) Technology.
The filing with the Shenzhen Stock Exchange says that the investment in China TranInfo is based on the belief that the company is looking at positive future development and will create value for investors.
The company booked RMB 342 million (USD 49.5 million) in net profit in the first half of 2018, up 17% year-on-year.
China TranInfo shares rose 10% to close at RMB 20.21 on Tuesday.
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