BEST Inc. (NYSE:BEST) is considering a sale as part of a strategic review, six people with knowledge of the matter said. With the endorsement of Alibaba, its biggest shareholder, Best has tapped financial advisers to explore options as its shares have been underperforming and are worth a fifth of its IPO price in 2018, two of the people involved in the discussions said. Billionaire Jack Ma's Alibaba, which owns 33% of the firm, as well as Best founder and CEO Johnny Chou, who has a 11% stake on a fully diluted basis, could both end up selling their stakes, five of the people said.

No formal sale process has been launched, and the company and Alibaba have not decided which option to take as the strategic review is still underway, cautioned the individuals, including two who were approached about a sale. The people declined to be named as the information is confidential. A Best spokeswoman denied that a sale was under consideration.

She said Chou continued to believe in the "bright future and long-term value" of the company's integrated smart supply chain and logistics solutions, and had no plan to sell his stake. The company, which has a market value of $790 million, did not comment on other issues including whether it was conducting a business review. Alibaba said in an emailed statement the information was incorrect, but did not elaborate.

Best tapped advisers to suggest strategic options towards the end of 2020, and they have approached a number of buyers including domestic delivery major S.F. Holding Co., Ltd. (SZSE:002352) and private equity firms for the sale of the stakes, they said. One of the potential buyers said his firm had received what he described as a deal "teaser" about a sale of shares by Best towards the end of last year and later about fundraising for one of its units. S.F. did not respond to a request for comment.

Other options the company is considering include fundraising for its freight delivery unit, three of the sources said. Best could also sell its finance leasing business, one said.