Alibaba Offloads Sun Art Stake to Refocus on Core Business
Source: scmp.com Selling at a Steep Discount Alibaba Group Holding Ltd. has announced the sale of its majority stake in Sun Art Retail Group Ltd. to private equity firm DCP Capital, signaling a major shift in strategy. The deal is valued at up to HK$12.3 billion ($1.6 billion), a significant markdown from the $3.6 billion the company spent in 2020 to double its stake in the hypermarket chain. This move underscores Alibaba’s retreat from physical retail operations, which had been championed under its previous leadership. Following the announcement, Sun Art’s shares plummeted by 35% in Hong Kong trading, while Alibaba’s stock experienced a more modest 1% dip. The sale reflects a broader trend within Alibaba, as it pivots from less profitable ventures to concentrate on its core e-commerce and technology businesses. While the company will incur an estimated $3 billion in losses from its non-core retail disposals, analysts note the decision aligns with Alibaba’s strategy to stre...