DCP Capital, a $5.5bn private equity firm focused on the consumer, healthcare, education and tech sectors in Asia has acquired Alibaba Group Holdings’s majority stake in Chinese hypermarket chain Sun Art Retail for HKD12.298bn ($1.58bn), according to a report by Reuters.
The report cites a filing to the Hong Kong Stock Exchange as revealing that the deal involves a 78.7% stake held by Alibaba subsidiaries.
Alibaba originally acquired a controlling interest in Sun Art in 2020 for $3.6bn, aiming to integrate its digital capabilities with Sun Art’s extensive network of hypermarkets across China. However, the divestment signals a strategic shift for Alibaba as it refocuses on its core e-commerce operations.
The sale comes on the heels of an impressive 85% surge in Sun Art’s shares over the past year, significantly outpacing the Hang Seng Index’s 20% rise during the same period. Despite the gains in Sun Art’s valuation, Alibaba is also exiting other non-core retail ventures, including its Chinese department store chain Intime, even at a potential loss.
