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BABA-W Fully Sells Stake in SUNART RETAIL; Expected Loss RMB13.1B+
Recommend 26 Positive 39 Negative 19 |
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BABA-W (09988.HK) announced that on December 31, 2024, the Alibaba Subsidiaries and New Retail entered into the SPA with Paragon Shine Limited, pursuant to which Paragon Shine Limited conditionally agreed to purchase the Alibaba Sale Shares (representing approximately 73.66% of the total number of SUNART RETAIL (06808.HK) Shares in issue) from the Alibaba Subsidiaries; and 480 million Sun Art Shares (representing approximately 5.04% of the total number of Sun Art Shares in issue) from New Retail. Pursuant to the SPA, the Alibaba Subsidiaries and New Retail are entitled to receive HK$11.637 billion, equivalent to HK$1.55 per Sale Share. In the event that the 2024 Interim Dividend of HK$0.17 has already been received by the Sellers on or before the SPA Completion, the SPA First Payment Price will be reduced by the amount of the 2024 Interim Dividend and the Sellers will be entitled to receive HK$10.361 billion, equivalent to HK$1.38 per Sale Share. BABA-W said that following completion of the Disposal, Alibaba Group will no longer hold any equity interest in Sun Art and Sun Art will cease to be accounted for as a subsidiary of the Company. The Company estimates the losses attributable to the Shareholders arising from the Disposal to be approximately RMB13.177 billion. The gross proceeds receivable by the Company would be approximately HK$12.298 billion. The proceeds from the Disposal are currently intended to be used by the Company for business developments, shareholder returns and general corporate purposes. The Disposal is considered to be a good opportunity for Alibaba Group to monetize its non-core assets and to utilize such proceeds to better focus on the development of its core businesses and enhance its shareholder return. Alibaba Group remains confident in the prospect of China’s consumer market. Going forward, the Company will continue to enhance consumer experience through technological innovation, and foster high-quality growth across the industry. AAStocks Financial News |
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