China’s Alibaba agrees to sells Sun Art stake for $1.58b

China’s Alibaba Group Holding Ltd announced on Wednesday that it has reached an agreement to sell its controlling stake in hypermarket chain Sun Art Retail Group to Chinese private equity firm DCP Capital for HK$12.298 billion ($1.58 billion).

The 78.7 per cent share is owned by Alibaba subsidiaries, as disclosed in a filing to the Hong Kong Stock Exchange (HKEX).

In 2020, Alibaba acquired a controlling stake in Sun Art for $3.6 billion to enhance its digital capabilities and support Sun Art’s numerous hypermarkets across China.

Alibaba is also divesting its Chinese department store unit Intime, even if it incurs a loss from the transaction. These stake sales are a part of Alibaba’s strategy to reorganise its business portfolio and concentrate on its primary e-commerce operations.

Attribution: Reuters

Subediting: Y.Yasser