Mubasher: Abu Dhabi-based Mubadala Investment Company and Chinese internet-based technology company Tencent Holdings Ltd. are considering bids for part of Singaporean Temasek Holdings Pte’s stake in global retailer A.S. Watson Group, people familiar of the matter said.

The Singapore holding company is mulling over selling about a 10% stake in A.S. Watson for around $3 billion, the sources who asked not to be identified told Bloomberg News.

Tencent may partner up with some investment funds for an offer for the stake in A.S. Watson, the world's largest health and beauty retail group owned by Hong Kong businessman Victor Li’s CK Hutchison Holdings Ltd., the people said.

The Chinese holding firm has also shown interest in tycoon Jack Ma’s Alibaba Group Holding Ltd., the people added.

In January, Bloomberg reported that Temasek was working with an adviser to find out options for its 25% holding in A.S. Watson after receiving some preliminary interest. It purchased the stake in A.S. Watson for $5.6 billion in 2014.

The sources said that a final decision has not been made yet as the suitors are still not sure they would proceed with firm offers.

Temasek could keep the stake as expected valuations varied which could make it difficult to reach a deal, the people said.

Representatives for Mubadala, Tencent, and Alibaba declined to comment, while Temasek said it does not comment on speculation in an emailed statement.