Alibaba leads consortium in $1,4 billion deal for stake in China's ZTO Express.

(Reuters) - Alibaba Group said on Tuesday it led a consortium of investors to buy about 10 percent of Chinese delivery company ZTO Express (Cayman) for $1,38 billion, as part of the e-commerce company's push into offline services.

The consortium includes Alibaba's majority-owned logistics affiliate, Cainiao Smart Logistics Network, Alibaba and ZTO said in a joint statement, without disclosing the identity of other investors. They said they expect the deal to close in June.

This is Alibaba's third investment in a Chinese delivery company, following its acquisition of minority stakes in YTO Express and Best.

The e-commerce company has been expanding its logistics network domestically and internationally while working to diversify its customer base. As part of this effort, Alibaba became the majority shareholder of Cainiao in September, a company that provides logistics support for Alibaba's main e-commerce platform, Taobao.

ZTO owns 1 percent of Cainiao, which it co-founded with Alibaba and more than a dozen other Chinese companies in 2013.

ZTO Chairman Lai Meisong told Reuters that the latest agreement would allow ZTO and Alibaba to better share their resources and help ZTO cut costs through access to new technologies. He said the pair decided to enter into an agreement to work more closely on operations and build trust between affiliates.

ZTO said Alibaba will have a seat on the company's board.

"This trust will improve the efficiency of our cooperation," Lai said in a telephone interview.

The listing of Shanghai-based ZTO on the New York Stock Exchange, valued at $1,4 billion, was the largest in the United States in 2016 and the largest by a Chinese company since Alibaba's $25 billion initial public offering (IPO) in 2014.

ZTO shares closed at a record high of $19,30 on Friday, the most recent trading day, valuing the company at $13,7 billion.

ZTO reported a 36 percent year-over-year increase in revenue in the first quarter, according to data released earlier this month. The company said it processed 6,2 billion orders in 2017, representing a market share of 15,5 percent, compared to 7,6 percent in 2011.