Alibaba places shares into healthcare assets ($1.4 BILLION DEAL)

Published on: 29 May, 2018

Chinese e-commerce business Alibaba Group Holding Ltd (NYSE: BABA) sold some shares of pharmaceutical business to fund purchases of health-related assets through $1.4 billion deal.

Alibaba Health Information Technology Ltd., a subsidiary of Alibaba, will be buying Ali JK Nutritional Products Holding Limited, a company that sells medical devices and other healthcare products and services on Alibaba's Tmall platform.

The price was issued at HK$5.80 per share compared to HK$6.77 on Monday, followed by a shocking raise of 52% since May 16 for Alibaba Health Information Ltd. Alibaba Pictures Group Ltd., another subsidiary of Alibaba, also increased as much as 32% on May 24.

Ali Health showed a loss in sales the year prior and the sudden increase in sales makes it the best its had since 2015. The stock became the best performing one on the MSCI Asia Pacific Index this month.

Daniel Zhang, Alibaba CEO, said in a statement that healthcare was strategically important for the firm and that the Ali Health unit will be expanding new categories.

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Andy Liao

Email: Andy@financialinsiders.com

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