Official announcements from Alibaba or major financial news outlets

Alibaba Sells 78.7% Sun Art Stake to DCP Capital for $1.6 Billion, Incurs $1.8 Billion Loss

Jan 2, 2025, 12:58 AM

Alibaba Group Holding Ltd. has agreed to sell its 78.7% majority stake in Sun Art Retail Group Ltd., the operator of the RT-Mart hypermarket chain and other supermarkets in China, to the private equity firm DCP Capital for approximately $1.6 billion. This move is part of Alibaba's strategy to divest from non-core assets and refocus on its core e-commerce business. The sale price represents a significant discount compared to the $3.6 billion Alibaba paid to acquire a controlling stake in Sun Art in 2020, resulting in an expected loss of about $1.8 billion for Alibaba. Following the announcement, Sun Art's shares experienced a sharp decline, dropping as much as 35% in early trading in Hong Kong.