Chinese retailer Yiguo has announced that it has agreed to transfer 18% of its shares in Lianhua Supermarket to Alibaba China, reportedly worth HKD780m (US$100m).
Alibaba's share in Lianhua grows further
Yiguo is a well-known Chinese fresh produce e-commerce leader and acquired all of Yonghui Superstores' shares in Lianhua Supermarket in January. The latest agreement with Alibaba is an indication of the tough trading conditions in China and the need for expertise. Only in February, Lianhua's controlling shareholder Bailian Group had formed a strategic partnership with Alibaba. Lianhua Supermarket will hope their rapid restructure will prevent similar losses seen in 2016.