Alibaba to Sell 78.7% Sun Art Stake for $1.6–$1.7 Billion

Jan 1, 2025, 08:56 PM

Alibaba Group Holding Ltd has agreed to sell its 78.7% stake in Sun Art Retail Group, a leading hypermarket operator in China, to private equity firm DCP Capital for approximately $1.6 billion (HK$12.298 billion), with some reports citing $1.7 billion (HK$13.1 billion). The deal, announced on January 1, 2025, is part of Alibaba's broader strategy to refocus on its core e-commerce and cloud computing businesses. Alibaba had initially invested $3.6 billion in 2020 to increase its stake in Sun Art to over 70%. The sale is expected to result in a loss of $1.8 billion for Alibaba. This move follows other divestments, including the sale of its department store unit Intime, as the company restructures its operations. Sun Art's stock fell 20% following the announcement, despite an 85% jump in its share price over the past year.