"Alibaba Sells Stake in Intime: Seen as a 'Strategic Move'"

Alibaba Group Holding Limited (NYSE:BABA) shares exhibited volatility during today's trading session following the company's announcement that it has agreed to sell all of its stake in the retail chain Intime alongside another minority shareholder. The sale to a consortium that includes Youngor Group and members of Intime's management team is expected to generate approximately 7.4 billion RMB (1 billion USD) in gross proceeds for Alibaba. The company anticipates recording a loss of around 9.3 billion RMB (1.3 billion USD) from the transaction. Completion of the deal is contingent upon obtaining merger control approval from the People's Republic of China and the fulfillment of other closing conditions.

Jefferies analyst Thomas Chong commented on the deal, stating, "In our view, the divestment of Intime was anticipated by the market, as a series of media reports (e.g., SCMP) had recently mentioned discussions regarding a potential sale. We believe that the divestment of Intime aligns with BABA's strategy to focus on its core business. We think that the disposal of non-core assets will help provide value returns to shareholders."

Alibaba's decision to divest its 99% stake in Intime is seen as a strategic move to concentrate on its main business operations. The sale is part of a broader strategy for Alibaba to streamline its portfolio and focus on core competencies, potentially enhancing shareholder value in the long run.