TMTPOST -- Alibaba Group Holding Ltd. has agreed to sell its majority stake in Sun Art Retail Group Ltd. to private equity firm DCP Capital, marking another divestment of its offline commerce assets as the company sharpens its focus on its core online operations. The deal is expected to generate up to HK$12.3 billion ($1.6 billion) in gross proceeds for Alibaba, which holds over 70% of Sun Art, a major operator of hypermart stores resembling Costco. This valuation is a stark drop from the $3.6 billion Alibaba spent in 2020 to double its stake in Sun Art, and well below Sun Art’s 2024 market value of approximately $3 billion. Following the announcement, Sun Art’s shares plummeted as much as 35% in early trading in Hong Kong, while Alibaba’s stock slipped more than 1%. The move underscores Alibaba’s ongoing efforts to streamline its portfolio and prioritize its dominant e-commerce and digital technology businesses.