BEIJING (Reuters) – China Alibaba (NYSE:) Group Holding Ltd said on Wednesday it has agreed to sell its majority stake in hypermarket chain Sun Art Retail Group (OTC:) to Chinese private equity firm DCP Capital for HK$12.298 billion ($1.58 billion).
The 78.7% stake represents stakes held by Alibaba affiliates, according to a filing with the Hong Kong Stock Exchange.
Alibaba paid $3.6 billion for a controlling stake in Sun Art in 2020, hoping to further leverage its digital presence to support Sun Art’s hundreds of hypermarkets in China.
The divestment follows an 85% jump in Sun Art shares in Hong Kong over the past year, easily outpacing around 20% gains in major stocks.
The e-commerce giant is also selling its Chinese department store unit Intime even as it records a loss of business.
The stake sale is part of Alibaba’s restructuring of its business portfolio to focus on its core e-commerce operations.
($1 = 7.7677 Hong Kong dollars)
