In a bid to bolster presence in China’s healthcare sector, Alibaba Group Holding Limited BABAis planning to sell certain pharmacy assets from its Tmall platform to Alibaba Health Information Technology, a Hong Kong listed company. Notably, Alibaba Health became a subsidiary of Alibaba in 2015.
Per the terms, the deal has been valued at $1.
Additionally, Alibaba’s economic interest as well as voting interest in Alibaba Health will increase to 56.2% from 48.1% and 67.5% from 61.5%, respectively. This bodes well for the company’s position in China’s healthcare market.
Coming to the price performance, shares of Alibaba have returned 60.7% over a year’s time, outperforming the industry’s rally of 44.8%.