MOSCOW (UrduPoint News / Sputnik – 29th January, 2021) The Russian Direct Investment Fund (RDIF), the UAE’s Mubadala Investment Company, and several middle Eastern sovereign wealth funds acquired a 7.85 percent stake in AliExpress Russia Joint Venture (AER JV) from Chinese e-commerce giant Alibaba Group, the RDIF said in a press release on Friday.
In October 2019, the RDIF, Alibaba Group, Russian network provider MegaFon and internet company Mail.ru Group closed a deal on launching AER JV, a joint venture operating in Russia and the Commonwealth of Independent States. On Friday the RDIF and its Middle Eastern partners announced the “completion of their joint investment” in AER JV.
“As part of the AER JV creation RDIF and partners had secured the exclusive right to acquire 7.85% shares in the JV from Alibaba Group. Acquisition of shares under this option was completed on January 28, 2021,” the RDIF said in a press release.
Following the acquisition, Alibaba has a 47.8 percent stake in AER JV, MegaFon has 24.3 percent, RDIF has 12.9 percent and Mail.Ru has 15 percent.
RDIF CEO Kirill Dmitriev said that participation of leading Middle Eastern sovereign funds in the acquisition shows “the high investment attractiveness of this joint venture,” which maintains strong positions in the e-commerce market in Russia and the CIS.