Alibaba Health Information Technology shares soar in Hong Kong
Shares of Alibaba Health Information Technology soared more than 85 per cent in Hong Kong on Wednesday after its ultimate controlling shareholder, e-commerce giant Alibaba Holding, will inject their online pharmacy business into the listed company in a deal worth HK$19.44 billion.
Alibaba Health shares rose to HK$12.6 at 10.30 am after it resumed trading on Wednesday. The shares had been suspended from trading since March 23.
In a stock exchange filing, the firm announced it has agreed to acquire Beijing Chuanyun Logistics Investment, which is 90.44 per cent held by Ali JK Investment, a wholly owned subsidiary of Alibaba Holding and 9.56 per cent by Mr Chen Wenxin.
The purchase will be satisfied by issuing of 2.96 billion Alibaba Health shares to Ali JK Investment and 313.03 million shares to Chen at a price of HK$5.28.
After completion of the deal, the firm said a restructuring involving there will be an injection of the operation into an online transaction platform to process the sales of products by Online Pharmacies.
“The group will benefit from the exclusive right to operate an online transaction platform for Online Pharmacies on Tmall’s platform for the sale of products by Online Pharmacies, including products that require seller to possess an Internet Drug Transaction Service Qualification Certificates (Type C), and products that do not require any licence,” according to the company statement.
