Ali Health (Alibaba Health Information Technology)

2020: Secondary share placing for $1.3 billion

The Chinese company Alibaba Health Information Technology, division of Alibaba Group, carried out the largest secondary share placing (SPO) since 2015 at the exchange of Hong Kong.

In particular, Alibaba Health within SPO produced 499 million new actions at the price 20.05 Hong Kong dollars (2.59 dollars) apiece. Thus, the company attracted nearly 1.3 billion dollars.

Alibaba Health stated that this money will be aimed "at the development of pharmaceutical business in the field of e-commerce".

2018: Purchase of other medical assets of Alibaba

On May 29, 2018 Alibaba Group announced consolidation of medical business. Under the terms of the agreement, Alibaba Health Information Technology (Ali Health) will purchase other "subsidiary" of the Chinese Internet giant — Ali JK Nutritional Products Holding Limited for 10.6 billion Hong Kong dollars (about $1.35 billion).

Ali JK Nutritional Products Holding Limited specializes in sales of the medical equipment and also products and services for health sector on the Tmail platform belonging to Alibaba. For financial year which will come to the end on March 31 the 2018th calendar the gross revenue of all sellers (their number exceeds 3 thousand) working with the company made about 20.56 billion yuans ($3.21 billion).

Alibaba consolidates medical business for $1.4 billion

Based on the transaction Alibaba will receive the new shares Alibaba Health Information Technology, having increased the share in this company from 48.1% to 56.2%. In terms of the number of papers with a voting right the share will grow from 56.2% to 67.5%.

This transaction is logical continuation of development of Alibaba Health within our flagman platform. Knowledge and Alibaba Health network in combination with understanding of consumers and technologies which Alibaba Group has will allow us to create the best ecosystem of health care in China — the CEO of Alibaba  Daniel Zhang  (Daniel Zhang) said.

Ali Health says that purchase of assets of Ali JK Nutritional Products Holding Limited will help the company to expand the range of the offered products. Independent shareholders Alibaba Health and the Hong Kong stock exchange should approve the transaction still.

According to forecasts of analysts of McKinsey & Co., medical expenses in China will grow from $357 billion in 2011 to $1 trillion to the 2020th.^[1]

Alibaba Health is the public company whose shares are traded in Hong Kong. During the period from May 16 to May 24, 2018 quotations jumped more than by 55% and reached the highest level in three years.

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