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.
