Alibaba Group Holding Limited (NYSE:BABA)  and Chinese state-backed firms are exploring bids for a stake in Unisplendour Corporation Limited (SZSE:000938) that could fetch as much as $7.7 billion, people familiar with the matter said. Tsinghua Unigroup Co.,Ltd is looking to divest its 46.45% stake in Shenzhen-listed Unisplendour as more of its bond payments are coming due, they said. Potential suitors include Wuxi Industry Development Group Co., Ltd., Beijing Electronics Holding Co.,Ltd.  and state-backed semiconductor investment fund JAC Capital, said the people.

They were not authorised to speak on the matter and declined to be identified. If Alibaba submits an offer due by the July 20 deadline for binding bids, it will team up with a firm owned by a local government, said two of the people. They did not disclose the name of the potential partner.

Unisplendour, Alibaba, Wuxi Industry Development Group, Beijing Electronics and JAC Capital did not respond to requests for comment.