MAHB share price rise after announcing collaboration with Alibaba

PETALING JAYA: Malaysia Airports Holdings Bhd’s (MAHB) share price rose 0.96% this morning on news of its strategic collaboration with Alibaba Group.

At 10.29am, the stock rose 0.96% or 8 sen to RM8.45 with a total of 23,000 shares traded. Its share price rose 0.72% or 6 sen to close at RM8.37 on Friday with a total of 1.59 million shares traded, giving it a market capitalisation of RM13.90 billion.

Last Friday, MAHB said its wholly-owned subsidiary MA eLogistics Sdn Bhd had entered into a shareholders' agreement with Cainiao Smart Logistics Network (Hong Kong) Ltd (Cainiao HK) to incorporate a joint venture (JV) company, to develop a regional e-commerce and logistics hub in KLIA Aeropolis.

The JV company will implement and carry out the development of the regional e-commerce and logistics hub, comprising the development of cargo terminals, sorting centres, warehouses and fulfillment centres, and other facilities for the e-commerce industry.

Cainiao HK will hold a 70% stake while MA eLogistics will hold the remaining 30% in the JV company, which will be named Cainiao KLIA Aeropolis Sdn Bhd. Its issued and paid up capital is RM206.67 million.

Cainiao HK is a wholly-owned subsidiary of Cainiao Smart Logistics Network (BVI) Ltd, which is in turn a wholly-owned subsidiary of Cainiao Smart Logistics Network Limited (Cainiao Cayman). Cainiao Cayman and its subsidiaries are the affiliates of Alibaba Group Holding Ltd.

The project will be built on 60 acres of land in KLIA Aeropolis, as part of the Digital Free Trade Zone (DFTZ) initiative.