China-based Wuhan Zhongshang Commercial Group is set to acquire a retail unit owned by home improvement retailer Easyhome in a deal valued up to $5.65bn.

In stock exchange filings, Wuhan Zhongshang said it will issue six billion shares for CNY6.18 ($0.91) per share, which would value the business between CNY36.3bn ($5.35bn) and CNY38.3bn ($5.65bn), reported Reuters.

The deal will also allow the reverse initial public offering for Easyhome’s retail arm on the Shenzhen stock exchange.

Following completion of the transaction, Easyhome will act as a controlling shareholder in the new retail firm.

Alibaba Group Holding along with 22 investors such as Sequoia Capital and Taikang Life will hold minority stakes in the company.

Easyhome and Alibaba did not respond to Reuters’ requests when asked to further comment on the deal.

“Following completion of the transaction, Easyhome will act as a controlling shareholder in the new retail firm.”

Established in 1999, Easyhome operates home improvement supplies and furniture retail business in China.

The Beijing-based company also offers building materials and provides home design and refurbishment services.

The company currently operates an online retail platform under the new retail unit offering a range of items and order services to customers.

Developed with the help of Alibaba, the platform is also integrated with 284 Easyhome stores.

Last year, Alibaba acquired a 15% stake in Easyhome Furnishing for a total consideration of $867m.

The deal expanded Alibaba’s new business model by integrating bricks-and-mortar and online shopping segments.