Singapore buys $1 bln in Alibaba stock in SoftBank sale

• Top Alibaba shareholder Softbank plans to sell $7.9 bln in stock
• Alibaba expands in Southeast Asia with $1 bln deal

Singapore's GIC Private, Ltd and Temasek Holdings each purchased $500 million of Alibaba shares at $74.00 apiece through subsidiaries, Alibaba said, offering details of the SoftBank sale announced on Tuesday.

Alibaba purchased $2 billion of its own stock at the same price, in a move which would add to earnings, Executive Vice Chairman Joe Tsai told analysts on a call.

Members of the Alibaba Partnership of senior executives and founders purchased another $400 million, as expected, at the $74 per share price, he added.

People walk past a retail shop of the SoftBank telecommunications company in Tokyo, Japan, May 10, 2016. Photo by REUTERS/Thomas Peter/File Photo

SoftBank also offered $5.5 billion in debt securities, which can be exchanged for Alibaba stock in three years, Tsai said.

SoftBank Group said on Tuesday it would sell at least $7.9 billion of shares in Alibaba to cut the Japanese company's debt. It said it would remain Alibaba's largest shareholder after the sale.

Shares of Alibaba fell about 6.5 percent to close at $76.69.