(Yicai Global) Nov. 20 -- Sun Art Retail Group Ltd. [HK:6808], the operator of two recognized brands -- Auchan and RT-Mart in China -- fluctuated widely in morning trading today after it received a USD2.88 billion-investment from e-commerce colossus Alibaba Group Holding Ltd. [NYSE:BABA].
Alibaba and Sun Art's shareholders, including Auchan Retail International SA, signed an investment agreement on a new retail concept today, with Alibaba to hold 36.16 percent of Sun Art's shares after the investment, per the agreement.
Sun Art opened more than 6.5 percent higher to USD1.38 (HKD9.16) per share this morning on the news. However, the price dropped in subsequent trading to over 10 percent down at HKD7.52 per share.
The company then recouped this loss, but still down 0.47 percent to HKD8.56 per share at 11:00 a.m.
The cooperation will be the largest new reform in China's retail history, said Zhang Yong, Alibaba's chief executive, and the tech titan will promote digitization of Sun Art's 446 supermarkets nationwide using Big Data and Industrial Internet technologies.