Alibaba sells majority stake in Sun Art Retail to DCP Capital for $1.58 billion
The sale follows a significant 85% rise in Sun Art's shares over the past year, outpacing the 20% gain in the Hang Seng Index
Alibaba Group Holding Ltd announced on Wednesday that it will sell its majority stake in Sun Art Retail Group to Chinese private equity firm DCP Capital for HK$12.298 billion ($1.58 billion).
The 78.7% stake being sold is held by Alibaba subsidiaries, according to a filing with the Hong Kong Stock Exchange.
Alibaba acquired a controlling stake in Sun Art for $3.6 billion in 2020, aiming to boost Sun Art's operations through its digital presence across hundreds of hypermarkets in China. The sale follows a significant 85% rise in Sun Art's shares over the past year, outpacing the 20% gain in the Hang Seng Index.
In addition to this sale, Alibaba is also offloading its Chinese department store unit, Intime, despite expecting a loss on the deal.
These moves are part of Alibaba's strategy to reshape its business and focus more on its core e-commerce operations.
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