Alibaba Group intends to purchase AutoNavi shares at a price of $21 per security, the Xinhua News Agency reported referring to Alibaba's statement.
Alibaba stated that its current shareholding in AutoNavi is 28%; following the transaction, AutoNavi will be wholly owned by Alibaba. The transaction will amount to $1.1 billion.
"Today, AutoNavi's two key tools, navigation and mapping applications, are already free of charge. Making them free to use, AutoNavi actually gave up on earnings from mobile phone manufacturers accounting for ca. 30% of the company's total profits," the statement emphasizes.