Alibaba will sell its 78.7% stake in Sun Art, a move revealed in a Hong Kong Stock Exchange filing on Wednesday. The company explained that this sale is a chance to monetize non-core assets, allowing them to invest more in their core businesses and enhance shareholder returns. Alibaba acquired its controlling stake in Sun Art in 2020 for $3.6 billion, hoping to combine its digital expertise with Sun Art's widespread network of hypermarkets in China.
This divestment aligns with Alibaba's broader strategy to simplify operations and concentrate on its primary e-commerce activities. Alongside the Sun Art sale, Alibaba is also selling its Chinese department store unit, Intime, despite expecting a $1.3 billion financial loss from the deal. Last month, Alibaba announced plans to merge its domestic and international e-commerce platforms into a single unit under unified leadership. This aims to streamline operations amid growing competition from value-oriented retailers both domestically and globally. 'The proceeds from the Disposal are currently intended to be used by our Company for business developments, shareholder returns and general corporate purposes,' Alibaba stated in a release.