Chinese tech giant Alibaba is continuing its push into the logistics industry with plans to scoop up a 14.65% stake in Shenzhen-listed logistics company STO Express.

The company’s controlling shareholder, Shanghai Deyin Investment Holdings Co. Ltd., will set up a joint venture with Alibaba, according to a securities filing dated Monday. Deyin Investment will hold a 51% stake in the new company by investing 29.90% of its STO Express shares. Alibaba will invest RMB 4.66 billion ($693.44 million) for 49% of the joint venture.

Deyin Investment is also setting up a second new subsidiary, which will hold a 16.0% stake in STO Express. The transactions will bring the parent company’s stake in STO Express down to 7.6%. The new subsidiaries haven’t been set up yet.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.