Chinese e-commerce giant Alibaba Group intends to sell its 78.7% stake in Chinese operator Sun Art Retail Group, which operates the Sun Art hypermarket chain, for $1.6 billion. This means a discounted purchase of almost $1.8 billion, if it is the asset. It is valued at fair market price.
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The buyer is the private investment company DCP Capital, which manages the Chinese chains RT-Mart and M-Club. The American publication Forbes noticed this.
The publication also recalls that just a month ago the Chinese giant reached an agreement to sell the Intime department store chain for $1.02 billion, and also with a discount in line with the purchase price. Alibaba then estimated the loss at $1 billion, because in 2017, Alibaba acquired 99% of Intime, the network was already worth $2.6 billion.
The Chinese giant acquired a stake in Sun Art in 2020 for $3.6 billion. These loss-making deals indicate that the company is actively selling non-core assets to focus on a number of key areas.
Since in 2023 Alibaba Group announced the division of its business into six main divisions, we can assume what these development vectors will be: online commerce (Taobao Tmall will be responsible for them), cloud technologies (Alibaba Cloud Intelligence), international digital business (International Digital Commerce), Delivery (Local Life), Logistics (Cainiao) and Digital Media (Dawen Entertainment).
Following the news, Alibaba shares fell 1.07% on the New York Stock Exchange and 1.33% on the Hong Kong Stock Exchange.
Author:
Ekaterina Alipova
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
