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Alibaba injects $488 million health food assets into Ali Health
May 19, 2017 / 1:18 AM / 5 months ago

Alibaba injects $488 million health food assets into Ali Health

HONG KONG (Reuters) - Alibaba Health Information Technology Ltd said on Friday controlling shareholder Alibaba Group Holding Ltd would sell HK$3.8 billion ($488.3 million) worth of health food and nutritional products businesses to the company, further developing it into Alibaba’s healthcare flagship platform.

FILE PHOTO: People ride a double bicycle past a logo of The Alibaba Group at the company's headquarters on the outskirts of Hangzhou, Zhejiang province November 10, 2014. REUTERS/Aly Song/File Photo

Alibaba Health will buy Ali JK Nutritional Products Ltd from Alibaba Group in a deal to be settled by the issue of 1.19 billion shares at HK$3.2 apiece, or a 6.16 percent discount to the last close, the company said in a filing to Hong Kong bourse.

The deal will bring a broader set of merchants into the online healthcare community, while the company will obtain more stable and sustainable revenue growth, the Hong Kong-listed firm added.

Alibaba Health saw its adjusted net loss narrowed to 98.3 million yuan ($14.3 million) for the year ended in March, from a 161.5 million yuan loss in the year-ago period amid rapid growth of its pharmaceutical e-commerce business.

($1 = 7.7822 Hong Kong dollars)

($1 = 6.8880 Chinese yuan renminbi)

Reporting by Donny Kwok; Editing by Stephen Coates

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