Investing.com– Alibaba Group (NYSE:) mentioned on Tuesday it’s going to promote its stake in Chinese language division retailer operator Intime to a consortium of patrons together with Youngor Group and Intime executives, and can clock a big loss on the sale.
The ecommerce large will promote its 99% stake within the chain for about 7.4 billion yuan ($1 billion), and can file a lack of 9.3 billion yuan ($1.3 billion) on the sale, Alibaba mentioned in an announcement on the Hong Kong Inventory Change.
The sale comes after Bloomberg reported the potential deal on Monday. Alibaba bought Intime in 2017 for $2.6 billion, and was reportedly mulling a sale of the enterprise earlier this 12 months.
The corporate undertook an enormous company restructuring in 2023 that noticed it carve up its holdings into six separate models and shift focus to its key cash makers, mainly its e-commerce and cloud models.
The Intime sale can be seemingly a part of this restructuring, as bodily retailers grapple with a sustained downturn in foot site visitors on account of dwindling Chinese language shopper spending. This has additionally impacted Alibaba’s core companies, with the agency clocking middling quarterly earnings over the previous two years.
Alibaba can be contemplating promoting its stake in grocery store chain Solar Artwork Retail Group Ltd (HK:), with negotiations over the sale at present in progress.
Alibaba’s Hong Kong shares (HK:) fell 1.5% after it introduced the Intime deal on Tuesday.