Alibaba Group Holding Limited (NYSE: BABA) today announced that it has
reached a definitive agreement with Hong Kong Stock Exchange-listed
Alibaba Health Information Technology Limited (SEHK: 00241) (“Alibaba
Health”) pursuant to which Alibaba Group will transfer the operations of
its Tmall online pharmacy business to Alibaba Health in consideration
for newly issued shares and convertible bonds of Alibaba Health (the
“Transaction”).
Alibaba Group currently owns an effective equity interest of
approximately 38% in Alibaba Health, and upon completion of the
Transaction, Alibaba Group’s effective equity ownership of Alibaba
Health will increase to approximately 53% (or approximately 54.6%
assuming the full conversion of the convertible bonds upon maturity) and
Alibaba Health will become a consolidated subsidiary of Alibaba Group.
There are now 186 online-licensed pharmacies offering over-the-counter
drugs, medical devices, contact lenses, and other general healthcare
products which are featured on Tmall. Gross merchandise value (GMV) of
those businesses for the financial year ended March 31, 2015 was
approximately RMB4.74 billion. After the Transaction, consumers will
continue to be able to make purchases from online pharmacies through
Tmall, with Alibaba Health running the business operations of
aggregating online pharmacy offerings to provide the highest quality and
widest consumer choice. With the integration of the online pharmacy
business, Alibaba Health is well positioned to execute a focused
strategy in the healthcare e-commerce sector and expand its offerings to
healthcare industry participants across China.
“Healthcare will be a strategically important growth area for our
ecosystem in the years to come, and we have a strong competitive
advantage in this area. Healthcare is especially important to Chinese
consumers, and we expect that this integration will enable Alibaba Group
to build a healthcare ecosystem that can utilize e-commerce, big data
and other technologies to improve the healthcare supply chain and
ultimately provide users with a better healthcare experience,” said
Daniel Zhang, chief operating officer of Alibaba Group.
In the future, Alibaba Health will be well positioned to enter the
online prescription drugs market should the opportunity arise. Alibaba
Group will continue to support the development of Alibaba Health to
become the healthcare flagship for Alibaba Group.
Completion of the Transaction is subject to the completion of certain
restructuring relating to the Tmall online pharmacy business and
customary closing conditions including, among others, obtaining
approvals of the Transaction by independent shareholders of Alibaba
Health and the Hong Kong Stock Exchange. Alibaba Group expects the
Transaction to complete in the third quarter of 2015, subject to
satisfaction of all closing conditions.
About Alibaba Group
Alibaba Group’s mission is to make it easy to do business anywhere. The
company is the largest online and mobile commerce company in the world
in terms of gross merchandise volume. Founded in 1999, the company
provides the fundamental technology infrastructure and marketing reach
to help businesses leverage the power of the Internet to establish an
online presence and conduct commerce with hundreds of millions of
consumers and other businesses.
Alibaba Group’s major businesses include:
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Taobao Marketplace (www.taobao.com),
China’s largest online shopping destination
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Tmall.com (www.tmall.com),
China’s largest third-party platform for brands and retailers
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Juhuasuan (www.juhuasuan.com),
China’s most popular online group buying marketplace
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Alitrip (www.alitrip.com),
a leading online travel booking platform
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AliExpress (www.aliexpress.com),
a global online marketplace for consumers to buy directly from China
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Alibaba.com (www.alibaba.com),
China’s largest global online wholesale platform for small businesses
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1688.com (www.1688.com),
a leading online wholesale marketplace in China
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Alibaba Cloud Computing (www.aliyun.com),
a provider of cloud computing services to businesses and entrepreneurs
Safe Harbor Statements
This press release contains forward-looking statements. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by terminology such as “will,” “aim,”
“expects,” “anticipates,” “future,” “intends,” “plans,” “believes,”
“estimates,” “potential,” “continue,” “ongoing,” “targets” and similar
statements. Among other things, statements that are not historical
facts, including statements about Alibaba Group’s beliefs and
expectations, the business outlook and quotations from management in
this press release, as well as Alibaba Group’s strategic and operational
plans, are or contain forward-looking statements. Alibaba Group may also
make written or oral forward-looking statements in its periodic reports
to the U.S. Securities and Exchange Commission (the “SEC”), in press
releases and other written materials and in oral statements made by its
officers, directors or employees to third parties. Forward-looking
statements involve inherent risks and uncertainties. A number of factors
could cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: Alibaba Group’s goals and strategies; Alibaba Group’s future
business development; Alibaba Group’s ability to maintain the trusted
status of its ecosystem, reputation and brand; Alibaba Group’s ability
to retain or increase engagement of buyers, sellers and other
participants in its ecosystem and enable new offerings; Alibaba Group’s
ability to successfully monetize traffic on its mobile platform; risks
associated with limitation or restriction of services provided by
Alipay; risks associated with increased investments in Alibaba Group’s
business; risks associated with acquisitions; privacy and regulatory
concerns; competition; security breaches; the continued growth of the
e-commerce market in China and globally; and fluctuations in general
economic and business conditions in China and globally and assumptions
underlying or related to any of the foregoing. Further information
regarding these and other risks is included in Alibaba Group’s filings
with the SEC. All information provided in this press release is as of
the date of this press release and are based on assumptions that Alibaba
Group believes to be reasonable as of this date, and Alibaba Group does
not undertake any obligation to update any forward-looking statement,
except as required under applicable law.
Copyright Business Wire 2015