Alibaba Group Holding's stock listed in the United States surged nearly 14% on Tuesday following the announcement that the Chinese e-commerce giant will engage in a massive restructuring of its business, dividing its empire into six separate units.
According to the statement, all independently-run divisions will have a chief executive officer and board of directors, with the ability to seek fundraising and a public listing when it is considered appropriate. The business explained in a statement that the choice was taken to "unlock shareholder value and foster market competitiveness."
The company's shares surged 14.20% to sell at $98.33 per share at 2:03 pm ET.
