04:33 AM EST, 01/02/2025 (MT Newswires) -- Alibaba Group ( BABA ) said Wednesday it struck a deal to sell its 73.7% stake in hypermarket operator Sun Art to DCP Capital subsidiary Paragon Shine for up to 12.3 billion Hong Kong dollars ($1.58 billion).

The company said it expects to book losses of about 13.18 billion renminbi ($1.81 billion) as a result of the disposal.

Alibaba ( BABA ) holds about 7.03 billion Sun Art shares through its subsidiaries. As part of the transaction, DCP Capital is also acquiring another 5% stake in Sun Art, or about 480.4 million shares, held by New Retail.

The company said the deal is a "good opportunity" to monetize its non-core assets.

Net proceeds will be used for business developments, shareholder returns and general corporate purposes, the company said.