China’s Alibaba to promote Solar Artwork stake to DCP for $1.6 billion

BEIJING (Reuters) – China’s Alibaba (NYSE:BABA) Group Holding Ltd stated on Wednesday it had agreed to promote its majority stake in hypermarket chain Solar Artwork Retail Group (OTC:SURRY) to Chinese language non-public fairness agency DCP Capital for HK$12.298 billion ($1.58 billion).

The 78.7% share represents holdings held by Alibaba subsidiaries, based on a submitting to the Hong Kong Inventory Alternate.

Alibaba paid $3.6 billion for a controlling stake in Solar Artwork in 2020 within the hope of additional leveraging its digital presence to assist Solar Artwork’s a whole bunch of hypermarkets in China.

The disposal of the stake comes after an 85% bounce in Solar Artwork’s shares in Hong Kong previously yr, which simply beat an round 20% rise in the primary Cling Seng Index.

The e-commerce large can also be promoting its Chinese language division retailer unit Intime even when it books a loss from the deal.

The stake gross sales are a part of Alibaba’s reshuffling of its enterprise portfolio to concentrate on its core e-commerce operations.

($1 = 7.7677 Hong Kong {dollars})