Paragon Shine Gains Control of RT-Mart

On Feb. 28, 2025, Sun Art Retail Group, the parent company of RT-Mart, announced that its transaction agreement with the offeror, Paragon Shine Limited, had been finalized in Hong Kong on Feb. 27. Alongside this, the company disclosed significant leadership changes: Huang Ming-Tuan stepped down as chairman of the board, with Julian Juul Wolhardt, CEO of DCP Capital, succeeding him.

In this transaction, the offeror and Lavender Haze Limited, acting as the designated buyers, acquired approximately 7.508 billion shares from the seller, accounting for about 78.70% of the company’s total issued share capital as of the joint announcement date.

The transaction consideration is being paid by the offeror in two installments. The first installment of approximately 6.907 billion Hong Kong dollars (US$888.8 million) was settled in cash on the agreement’s completion date. The remaining amount of HK$3.4535 billion (US$444.4 million), along with up to HK$0.20 (US$0.026) per share in interest, will be deferred and paid in cash on the specified second payment date outlined in the agreement.

As early as Jan. 1 of this year, Alibaba announced that its subsidiaries, together with New Retail, had reached an agreement with DCP Capital to sell their entire equity stake in Sun Art Retail Group, the parent company of RT-Mart, for a total consideration of up to HK$13.138 billion (US$1.691 billion), equivalent to approximately 78.7% of the company’s issued share capital.

RT-Mart, established by Ruentex Group in 1996, opened its first store in Shanghai in 1998, competing with retail giants such as Carrefour and Walmart. In 2010, RT-Mart’s sales revenue surpassed those of both Carrefour and Walmart for the first time. Sun Art Retail, the parent company of RT-Mart and Auchan, once boasted a market share greater than Walmart, solidifying its position as the largest retailer in China. Listed on the Hong Kong Stock Exchange in 2011, Sun Art Retail’s market value peaked at HK$127.8 billion (US$16.45 billion), further cementing its status as China’s leading retailer.

However, RT-Mart began seeing store closures as early as 2016. In November 2017, Alibaba invested approximately HK$22.4 billion (US$2.88 billion) to acquire a 36.16% direct and indirect stake in Sun Art Retail. In October 2020, Alibaba further increased its stake with another investment of HK$27.957 billion (US$3.60 billion), becoming the controlling shareholder. However, despite its efforts to digitize the business, Alibaba was unable to halt Sun Art Retail’s declining performance. Over the seven years from late 2017 to the final sale, Alibaba is estimated to have incurred a loss of nearly HK$40 billion (US$5.15 billion).

Image: RT-Mart

This article was translated from Chinese. Read the original article.