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Alibaba Could Reap $9.4 Billion From New Alipay Deal

Alibaba Group Holding Ltd. will get at least $9.4 billion from the future value of its finance affiliate after striking a new deal with the payment processor.

China’s biggest e-commerce operator is entitled to the payment if Alipay or its parent company seek an initial public offering, according to a filing yesterday that scrapped a previous agreement limiting the value to $6 billion. Alibaba also gets the perpetual right to 37.5 percent of the finance arm’s pretax earnings and can buy a stake of about one-third if regulators approve.