Alibaba To Invest $2.88 Bln To Obtain Stake Of 36.16% In Sun Art Retail

(RTTNews) - Alibaba Group Holding Limited (BABA), Auchan Retail S.A. and Ruentex Group announced a strategic alliance that brings together their online and offline expertise to explore new retail opportunities in China's food retail sector.

As part of this strategic alliance, Alibaba Group will invest a total of HK$22.4 billion or approximately US$2.88 billion to obtain an aggregate direct and indirect stake of 36.16% in Sun Art Retail Group Limited (HK stock code: 6808, "Sun Art") by acquiring shares from Ruentex.

Auchan Retail is also increasing its stake in Sun Art. The transaction will give Auchan Retail, Alibaba Group and Ruentex approximately a 36.18%, 36.16%, and 4.67% economic interest in Sun Art, respectively. Auchan Retail will continue to consolidate Sun Art in its financials following the transaction.

Sun Art is a leading multi-format offline food retailer in China. As of June 30, 2017, Sun Art operated with a total gross floor area of approximately 12 million square meters in China. Sun Art currently operates 446 hypermarkets as large as 17,000 square meters in 29 provinces, autonomous regions and municipalities across China under the "RT-Mart" and "Auchan" banners. It also operates superstores and innovative unmanned stores under the "Auchan Minute" brand.