Alibaba’s cloud division eyes state firms for up to $3 billion fundraising- Bloomberg News

(Reuters) -Alibaba Group Holding Ltd’s cloud division is weighing raising funds via a private round from Chinese state-owned enterprises ahead of the business’ market debut in Hong Kong, Bloomberg News reported on Monday.

The tech giant is working with advisers on a potential fundraise by its Cloud Intelligence unit that could mop up about 10-20 billion yuan ($1.38-$2.75 billion), the report said, citing people with knowledge of the matter.

Prospective investors include state-backed telecommunication companies, the report said, adding that deliberations are preliminary and details of the financing such as size and timing could change.

Alibaba did not immediately respond to Reuters request for comment.

Earlier this year, Alibaba announced plans to restructure into six units following a two-year regulatory crackdown on China’s tech sector.

It approved a full spinoff of the Cloud Intelligence Group via a stock dividend distribution to shareholders, aiming to complete the public listing within the next 12 months.

Ant Group, which was spun off from Alibaba 12 years ago, also announced a surprise share buyback in July, valuing the fintech giant at $78.54 billion, well below the $315 billion touted in an abandoned public listing in 2020.

($1 = 7.2706 Chinese yuan renminbi)

(Reporting by Shivani Tanna in Bengaluru; Editing by Dhanya Ann Thoppil and Janane Venkatraman)