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Photo = Yonhap news |
[Alpha Biz= Kim Sangjin] Alibaba, China's largest online shopping company, has decided to sell its stake in Sun Art, the country's largest hypermarket chain, for 13.1 billion Hong Kong dollars (approximately 2.5 trillion KRW).
According to the South China Morning Post (SCMP), Reuters, and Bloomberg on Tuesday, Alibaba Group Holding announced the agreement to sell its entire stake in Sun Art Retail Group to Chinese private equity firm DCP Capital.
As per the disclosure submitted to the Hong Kong Stock Exchange, the sale price is set at HK$1.75 per share for Sun Art's stake.
SCMP reported that Alibaba is expected to incur a loss of 13 billion yuan (approximately 2.6 trillion KRW) following the transaction.
Alibaba initially began investing in Sun Art in 2017, gradually increasing its stake. In October 2020, Alibaba acquired a controlling interest by paying HK$28 billion (approximately 5.3 trillion KRW) to its French owner, the Mulliez family.
This marks Alibaba's second major divestment of its offline business in recent times.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
