New Business
Alibaba sells hypermarket operator Sun Art for US$1.7 billion to refocus on e-commerce
The deal between Alibaba and Chinese private-equity firm DCP Capital was reached on the last day of 2024, involving the disposal of the Hangzhou-based company’s interest in Sun Art at HK$1.75 per share, according to a New Year’s Day filing to the Hong Kong stock exchange.
Alibaba is expected to book a 13-billion yuan (US$1.8 billion) loss attributable to its shareholders when the sale is completed. Alibaba owns the South China Morning Post.
The two transactions reflect Alibaba’s effort to refocus on its core e-commerce operations and cloud computing operation, which oversees its artificial intelligence-related businesses, under a strategy initiated by group chief executive Eddie Wu Yongming.
The sale of Sun Art represents a “good opportunity” for Alibaba to “monetise its noncore assets and to utilise such proceeds to better focus on the development of its core businesses”, the company said in its filing.
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