Russian sovereign fund to exercise options of buying shares in AliExpress Russia - chief executive

TASS, 29.10.2019

The Russian Direct Investment Fund (RDIF) intends to exercise an option for buying extra shares in the joint venture AliExpress Russia, chief executive of RDIF Kirill Dmitriev told reporters on Tuesday.

"Certainly, we expect that we will take advantage of this option," Dmitriev said.

On October 9, RDIF, Mail.ru Group, Alibaba, and MegaFon have completed a deal to create a joint venture (JV) in the social e-commerce in Russia and the CIS countries. It was noted that AliExpress Russia JV (AER JV) is majority owned by Russian shareholders with a Board of Directors comprised of representation from RDIF, Alibaba Group, MegaFon and Mail.ru Group.

The joint venture agreement sets forth that RDIF may exercise its option for acquisition of 1% of ordinary shares in AliExpress Russia from the Alibaba Group. Furthermore, RDIF made an option agreement for buying up to 4% of shares in AliExpress Russia from MegaFon.

Dmitriev did not detail the option referred to.