Alibaba Sells $1.6 Billion Stake in Sun Art Retail to Refocus on E-Commerce
The Chinese tech giant divests its controlling interest in Sun Art Retail, booking significant losses as part of a broader strategy to prioritize core businesses.
- Alibaba agreed to sell its 78.7% stake in Sun Art Retail Group to private equity firm DCP Capital for approximately $1.6 billion.
- The deal results in an estimated $1.8 billion loss for Alibaba, reflecting a significant markdown from its $3.6 billion investment in 2020.
- The sale aligns with Alibaba's shift away from non-core assets, following the recent divestment of its Intime department store chain.
- Sun Art, a major hypermarket operator in China, has faced declining sales and store closures, losing nearly 80% of its stock value over five years.
- Alibaba plans to use proceeds from the sale to strengthen its e-commerce and AI-driven marketing strategies under its new leadership.
South China Morning Post 
Benzinga 
Forbes 