Chinese e-commerce company Alibaba is reportedly planning to acquire a 32% stake in discount supermarket chain Sanjiang Shopping Club for more than CNY2bn ($290m).
The move is in line with Alibaba's strategy to improve traditional offline and online models, as the company seeks to replace distributors and middlemen in order to allow stores to buy directly from suppliers.
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With around 160 stores, Sanjiang has a market value of approximately $830m, according to media sources.
In a regulatory filing, Alibaba said that it will buy 'CNY1.52b of new shares, CNY438.6m of stock from existing holders, and CNY188m of convertible bonds via a private sale'.
Alibaba has already invested in Suning Commerce Group and Intime Retail Group, as part of its efforts to establish new sales channels and improve its logistics network.
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Suning Commerce currently operates more than 1,600 electronics appliances stores across mainland China, Hong Kong and Japan, while Intime Retail operates a chain of department stores.
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By GlobalDataAccording to Sanjiang, Alibaba currently has no plans to purchase additional stakes in the next 12 months.
Alibaba was founded in 1999 and launched its first website to help small Chinese exporters, manufacturers and entrepreneurs to sell internationally.
Image: Alibaba Group's corporate campus in Xixi, Hangzhou, China. Photo: courtesy of Alibaba.
