Alibaba sells medical assets for HK $10.6 B

Alibaba Group Holding Ltd. is selling its medical assets for HK$10.6 billion ($1.4 billion) to a Hong Kong, S.A.R., China-listed unit that will then become its flagship healthcare arm.

Alibaba Health Information Technology will then serve as Alibaba’s main healthcare business. "Healthcare is a strategically important area for Alibaba Group with strong growth potential," Chief Executive Officer Daniel Zhang said in the statement. "This transaction is a logical evolution for the continued development of Alibaba Health into our healthcare flagship platform," reported Bloomberg.

After the deal, Alibaba will control a 56.2 percent economic interest and 67.5 percent of voting interest in the company. The transaction remains subject to the approval of independent Alibaba Health shareholders and the Hong Kong, S.A.R., China Stock Exchange.