(Yicai Global) Aug. 1 -- Alibaba Group Holding has penned an equity acquisition agreement with parcel delivery juggernaut STO Express that can be invoked at any time in the next three years to give the Chinese e-commerce giant a controlling stake for a fire sale price .

Alibaba can, at any time, invest CNY9.98 billion (USD1.45 billion) in the three years from Dec. 28, 2019, to lift its indirect shareholding in STO Express to a dominant 46 percent under the agreement, according to an announcement by STO yesterday.

The market bristled at this revelation, and swatted STO Express shares [SHE:002468] to the 10 percent daily limit down under bourse rules right after the bell to stop trading at CNY26.68 (USD3.87).

This ire is understandable. STO Express' market cap at yesterday's close was CNY45.4 billion. To buy a 46 percent stake at the market rate would thus set you back CNY21 billion. Alibaba's option prices the shares at CNY14.6 billion, a 30 percent discount that really debases other investors' coin. Alibaba's [NYSE:BABA] opening in the Big Apple later today should also see some movement in its stock price.

Editor: Ben Armour