Alibaba sells majority share in Sun Art Retail Group
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Chinese marketplace giant Alibaba has announced the sale of over 7.5 billion shares in the Sun Art Retail Group Limited, offloading its 78.7 percent stake in the retail chain.
Alibaba Subsidiaries and New Retail entered into a sale and purchase agreement with the purchaser, DCP Capital, at a total consideration of around 12.3 billion Hong Kong dollars.
In a regulatory filing, Alibaba said the consideration for the sale was determined after “arm’s length commercial negotiations between the parties” that took into account the recent and historical prices of the Sun Art Shares on the Stock Exchange, among other factors.
The company noted: "The disposal is considered to be a good opportunity for Alibaba Group to monetise its non-core assets and to utilise such proceeds to better focus on the development of its core businesses and enhance its shareholder return.”
Alibaba first snapped up its controlling stake in Sun Art back in 2020 for 3.6 billion dollars. Now, however, Alibaba is undergoing plans to merge its domestic and international e-commerce platforms under single leadership, streamlining operations to counter increased competition from rival budget retailers.
Alibaba added: "The proceeds from the disposal are currently intended to be used by our company for business developments, shareholder returns and general corporate purposes.”