NEW YORK (Reuters) - Alibaba Group said it has reached an agreement with Softbank Corp and Yahoo Inc that promises Alibaba could receive up to $6 billion from an initial public offering or liquidation of its e-payment unit, Alipay.
The agreement between the three parties capped off months of intense negotiations sparked by a highly public spat over the transfer of Alipay to a company wholly owned by Alibaba founder Jack Ma, a move that Yahoo claimed it was not aware of.
Under the terms of the deal, Alibaba Group will receive no less than $2 billion and no more than $6 billion in proceeds from an initial public offering of Alipay or other "liquidity event".
Yahoo shares rose 6.7 percent to $14.40 in premarket trading.
(Reporting by Melanie Lee in Shanghai, Writing by Franklin Paul in New York; Editing by Derek Caney)