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RDIF, Megafon, Mail.ru and Alibaba JV deal may be closed on June 5 — source

In September 2018, RDIF, Alibaba Group, Megafon and Mail.ru Group announced plans to set up the largest e-commerce joint venture in Russia and CIS countries branded AliExpress Russia

MOSCOW, June 4. /TASS/. The deal on a joint venture to be set up by the Russian Direct Investment Fund (RDIF), Alibaba, Megafon and Mail.ru Group may be closed on June 5, a source close to the deal told TASS on Tuesday.

"It is probable that the deal will be closed tomorrow," the source said.

In September 2018, RDIF, Alibaba Group, Megafon and Mail.ru Group announced plans to set up the largest e-commerce joint venture in Russia and CIS countries branded AliExpress Russia. Alibaba Group will add its current business AliExpress in Russia and the Russian part of Tmall platform in the joint venture. It will also be investing in the JV in the future. Megafon will sell its 10% stake in Mail.Ru Group to Alibaba Group in exchange for a stake in AliExpress Russia. Mail.ru Group, in turn, will transfer its e-commerce business Pandao to the joint venture, as well as distribution in the format of integration with the products of Mail.ru Group.

Earlier reports said that the deal is expected to be closed in Q1 2019. After the deal’s completion, Alibaba Group (48%), Megafon (24%), Mail.Ru Group (15%) and RDIF (13%) will become owners of AliExpress Russia, meaning that the aggregated share of Russian players in the joint venture will be 52%.

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