Alibaba Group's investment arm said today it has made an offer to privatize Hong Kong-listed Intime Retail Group in which it holds a minority share to boost synergies of new retail formats.
Alibaba Investment Ltd and Intime founder Shen Guojun has jointly proposed to make a payment of up to HK$19.8 billion (US$2.6 billion), or HK$10 per share. The payment will be made by cash and/or debt financing.
Alibaba will become the controlling shareholder with approximately 74 percent in the company after the closing of the deal.
It currently owns approximately 28 percent of the equity interests in Intime after it made an initial investment in July 2014.
The Hangzhou-headquartered e-commerce giant seeks to build new retail formats by leveraging its substantial consumer reach, rich data and technology.
Intime currently operates 29 department stores and 17 shopping malls in China's first and second tier cities.
"Alibaba is working with offline retailers to transform conventional approach, create new consumer shopping experience and use actions to embrace future opportunities under the new retail model," said Daniel Zhang, Alibaba Group Chief Executive Officer.