Alibaba Group Holding Ltd (BABA) has decided to divest its controlling stake in Sun Art Retail Group to the Chinese private equity firm DCP Capital for a reported $1.58 billion. This transaction marks a notable decrease from the $3.6 billion Alibaba initially invested to bolster its stake in Sun Art in 2020. The shareholding involved, which constitutes 78.70%, is held by Alibaba’s subsidiaries.
Sun Art Retail has confirmed that on December 31, 2024, the Offeror entered into a sales and purchase agreement with the Sellers. This agreement pertains to the conditional sale and purchase of approximately 7.51 billion Shares. Termed as the Sale Shares, they represent roughly 78.70% of the shares issued as of the joint announcement date, with a total transaction value of HK$10.36 billion, translating to HK$1.38 per sale share.
