Embattled Chinese retail company Suning.com will sell its consumer finance unit in an attempt to remove itself from money-losing operations and rebuild its core retail business, reports Nikkei Asia. The company’s restructuring is led by a state-owned fund and major shareholder Alibaba Group Holding.
The Nanjing-based company is looking to sell a 39% stake in Suning Consumer Finance to Bank of Nanjing, among others, for around RMB 368 million ($58.2 million). The bank, which already holds a 15% interest, would emerge as the majority shareholder. The planned transaction is subject to regulatory approval. The retail group will retain a 10% share in the finance unit and keep a long-term partnership with Bank of Nanjing, according to local media.
Suning rapidly broadened the scope of its operations with acquisitions such as the Chinese supermarket business of French retail giant Carrefour Group, purchased in 2019. The Chinese group grabbed global attention when it bought storied Italian soccer club Inter Milan in 2016. But this expansion has sent Suning’s earnings tanking.