ALBAWABA – Alibaba, the Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology, announced selling its shares in Sun Art, a leading retailer with hypermarket and omni-channel e-commerce businesses in China, for approximately $1.6 billion.
Alibaba sells shares in Sun Art
The famous e-commerce leader announced selling their shares in Sun Art hypermarket for $1.6 billion, which equals about 70% of the major retail chain.
Alibaba made the deal with private equity firm DCP Capital, a Chinese private equity firm that focuses on the consumer, healthcare, education, and technology sectors in Asia.
“The sale is considered to be a good opportunity for Alibaba Group to monetize its non-core assets and to utilize such proceeds to better focus on the development of its core businesses and enhance its shareholder return,” the company stated.
Alibaba made the deal with private equity firm DCP Capital. (SunArt)
Notably, Alibaba paid $3.6 billion previously in 2020 to double its shares value in Sun Art, which currently has a market value of about $3 billion.
Recently, the famous e-commerce group is aiming to focus on businesses that supports its own field and ventures, including cloud computing, under the leadership of Eddie Wu, CEO of Alibaba Group.
It is worth mentioning that Alibaba announced the sale of its Intime department store chain last month for $1 billion.
The company stated that this decision was made as they aim to shift focus from the retail industry to the e-commerce sector, amid increasing competition in the Chinese market.
It is worth noting that Alibaba is currently facing diverse challenges as the Chinese economy slows down and competition continues to emerge in the e-commerce sector.
