On December 17th, Alibaba announced on the Hong Kong Stock Exchange that the company and another minority shareholder have agreed to sell 100% equity of Intime to a consortium of buyers consisting of members of the Yagor Group and Intime management team.
Alibaba currently holds approximately 99% of the equity of Intime, and the total proceeds from the sale of Intime are approximately RMB 7.4 billion. Alibaba expects to record a loss of approximately RMB 9.3 billion due to the sale of Intime.
Alibaba stated that the completion of the sale of Intime requires a review of the concentration of Chinese operators and other customary delivery conditions.
As of noon on December 17th, Yagor (600177) was trading at 9.31 yuan, an increase of 2.87%. It is worth noting that the stock price of Yagor once hit the daily limit up during trading.
According to the Daily Economic News on the 17th, regarding the acquisition of Intime Department Store, Yagor responded that the group and Intime management jointly invested in Intime with the aim of "strengthening and supplementing the chain" and improving the fashion ecosystem. After the investment is completed, Yagor Group will provide sufficient operational space for the management of Intime and support its further high-quality development.
On December 16th, it was reported that Alibaba is in talks with Intime Department Store to sell its related shares to Yagor, a leading enterprise in the textile and clothing industry. According to insiders, "Currently, both parties plan to hold a press conference to announce relevant merger and acquisition matters
On December 17th, in response to relevant issues, Beijing Business Daily called Yagor for verification, and the other party stated that the listed company did not disclose any undisclosed information.
Yintai Department Store was established in 1998 and is at the forefront of China's department store retail industry. In March 2014, Alibaba announced a strategic investment of HKD 5.37 billion in Yintai Commercial and formed a joint venture company. In June 2016, Intime Commercial Group accepted Alibaba's share swap notice, and Alibaba's total shareholding in Intime reached 27.90%, becoming the largest shareholder. In January 2017, Intime Commercial announced privatization on the Hong Kong Stock Exchange, with joint bidders including Alibaba Investment, a wholly-owned subsidiary of Alibaba Group, and a wholly-owned company of Intime Commercial founder Shen Guojun. The transaction amount reached HKD 19.8 billion, and after privatization, Alibaba became the controlling shareholder of Intime, with its shareholding ratio increasing to about 74%.
According to Northern Net, at Alibaba's financial report conference in February 2024, Alibaba Group Chairman Joseph Tsai stated that the progress regarding the sale of non core assets was very smooth. In the nine months since fiscal year 2024, Alibaba has withdrawn $1.7 billion in non core assets. He also mentioned that there are still many traditional physical retail businesses on Alibaba's balance sheet, which are not core businesses, and it is reasonable to exit them.
Daily Economic News Comprehensive Alibaba Announcement, Beijing Business Daily, Northern Net, Daily Economic News, Public Information