Alibaba Group is selling its 100% stake in Intime, a leading Chinese department store, to a consortium led by Youngor Group for approximately RMB 7.4 billion.

Information on the Target

Alibaba Group Holding Limited has reached an agreement to sell 100% of its equity interest in Intime, a leading department store operator in the People's Republic of China (PRC). This transaction is a joint effort with another minority shareholder and involves an agreement with a consortium of buyers, which includes Youngor Group and members of Intime’s management team.

As of now, Alibaba holds approximately 99% equity in Intime. The anticipated gross proceeds from this sale are around RMB 7.4 billion (approximately US$1.0 billion). However, this transaction is expected to result in losses for Alibaba amounting to around RMB 9.3 billion (approximately US$1.3 billion), reflecting the carrying values of Intime’s net assets as of September 30, 2024.

Industry Overview in the Target’s Specific Country

The retail industry in China has been experiencing significant transformation due to rapid urbanization, changing consumer behaviors, and the expansion of digital commerce. Department stores,