Alibaba’s subsidiary, Taobao China Software, plans to sell its 20% stake in Suning.Com to Hangzhou Haoyue Enterprise Management for 2.8 billion yuan ($389 million).
Suning.Com, listed on the Shenzhen stock exchange, officially confirmed the deal in a filing on Friday.
As part of a broader restructuring effort, Alibaba (China) Network Technology, another Alibaba subsidiary, is transferring stakes in various companies like Focus Media and YTO Express to Hangzhou Haoyue Enterprise Management.
The primary objective is for Alibaba (China) Network to concentrate on its core businesses.
This sale of the Suning.Com stake is one of multiple transactions as Alibaba undergoes restructuring, streamlining its business and focusing on essential operations.
Despite the original vision of founder Jack Ma, who envisioned Alibaba as “the world’s fifth largest economy,” the company is now breaking up its extensive business empire.
Besides Suning.Com, Alibaba is transferring holdings in other companies such as Meinian Onehealth, Red Star Macalline Group, and Shanghai Lily & Beauty.
These transactions comply with China’s A-shares regulations, requiring disclosure of shareholder changes involving stakes of 5% or more.
The expected outcome of the Suning.Com stake sale is to assist Taobao China Software in focusing on its main business operations, aligning with Alibaba’s ongoing restructuring goals.
Stay informed with our financial updates, stocks, bonds, commodities. Get global & political insights. Follow us & enable notifications for the latest updates.
