Alibaba to take control of hypermarket chain Sun Art
After the transaction is complete, Alibaba Group will own 72% of Sun Art
Stocks impacted: Alibaba Group Holdings (9988), Sun Art Retail Group Ltd (6808)
Alibaba Group said it will invest $3.6 billion to acquire a controlling stake in hypermarket operator Sun Art Retail Group Ltd, one of China’s largest big-box and supermarket chains. After the transaction is complete, Alibaba Group will own 72% of Sun Art. Alibaba is also interested in buying the remaining of Sun Art’s shares for HK$17 billion or at HK$8.10 per share. As a reminder, Alibaba first invested in Sun Art back in 2017, spending about $2.88 billion to pick up a 36.16% share in the chain. Sun Art reported a 17% jump in first-half profit to 2.1 billion yuan in August (US$314 million) from the same period last year. Sun Art surged as much as 28% in an initial reaction to the news and finished the day 19.17% higher on Monday. Alibaba stocks rose 1.09%.
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