China’s Alibaba Group to pick up 20 to 26 per cent stake in Micromax

Micromax is likely to sell between 20 to 26 per cent of its stake to China’s Alibaba Group for about $700 million (Rs 42 billion).

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The deal involves the sale of a stake of 20-26% to Alibaba Group Holding, the owner of China’s leading online payment solutions company Alipay, allowing it to gain entry into one of the world’s fastest-growing handset markets.

The transaction is likely to value Micromax at around $3.5 billion (Rs 210 billion) inclusive of debt. The deal may also see the participation of Japan’s SoftBank, which has a 32 per cent stake in Alibaba.

Citigroup is advising Alibaba and SoftBank while Micromax is being advised by Goldman Sachs.