Alibaba sells hypermarket stake for 1.7 billion US dollars

These sales mark another phase in Alibaba's strategy to focus more on its core competencies and divest less profitable business units.

Eulerpool News Jan 3, 2025, 9:11 AM

The Chinese e-commerce giant Alibaba has announced an agreement to sell its 78.7 percent stake in Sun Art Retail Group to the private equity firm DCP Capital Partners. The deal, which includes gross proceeds of up to 1.6 billion US dollars, is part of Alibaba's strategy to focus on its core online retail business.

Alibaba acquired the majority stake in Sun Art for $3.6 billion in 2020. The hypermarket operator, listed in Hong Kong, is expected to be delisted according to a stock exchange announcement, while DCP Capital Partners plans a strategic review of the business. Alibaba expects a book loss of around $1.8 billion from the disposal.

The transaction follows Alibaba's announcement last month to sell its stake in the department store chain Intime for $1.02 billion. Here too, the company expects a loss of over $1 billion.

The withdrawal from Sun Art underscores Alibaba's challenges in an increasingly difficult market environment.

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