Beijing, China – Alibaba Group Holding Ltd., a multinational tech firm, has recently confirmed an agreement to sell its majority share in the Sun Art Retail Group to DCP Capital in a deal valued at HK$12.298b ($1.58b).
In a recent report from Reuters, it was revealed that the 8.7% stake reflects the shares owned by Alibaba subsidiaries.
Alibaba also secured a controlling stake amounting to $3.6b in Sun Art in 2020, with the hopes to strengthen its digital presence and support the chain’s extensive network of hypermarkets in China.
It was further reported that the sale of the stake follows the 85% surge in Sun Art’s Hong Kong shares over the past year, which greatly exceeded the 20% growth of the Hang Seng Index.
Moreover, the e-commerce company is set to proceed with the sale of its Chinese department store Intime despite chances of loss from the transaction.
Said move plays a key part on Alibaba’s strategy to reorganise its business portfolio and focus more on its core e-commerce operations.
