Investing.com-- Shares of Meitu Inc (HK: 1357 ) climbed to a seven-year high on Wedesday after the Chinese photo-editing app developer announced a strategic partnership with Alibaba (NYSE: BABA ) Group (HK: 9988 ) and a $250 million convertible bond issuance to the e-commerce giant’s subsidiary.
Hong Kong-listed Meitu’s stock rose as much as 17.8% to HK$6.95, its highest since June 2018. Shares were trading 5.8% higher at HK$6.24 as of 02:23 GMT.
The company on Tuesday said it would collaborate with Alibaba.com China Limited in e-commerce, AI technology, and cloud computing.
The deal includes issuing convertible bonds with a 1% annual interest rate, maturing in three years, and an initial conversion price of HK$6.00 per share—a premium to recent trading levels.
The partnership aims to integrate Meitu’s AI-powered imaging tools with Alibaba’s platforms, while Meitu has committed to purchasing RMB560 million ($77.6 million) in cloud services from Alibaba over three years.
Hong Kong-listed Alibaba stock also rose nearly 1% on Wednesday.