Hong Kong-listed information and content service provider Alibaba Health Information Technology Ltd (HK:0241) is set to acquire 14.52% shares of Guizhou Ensure Chain Pharmacy Company Limited for CNY421.8 million ($61.3 million), according to a statement on Friday.
Under the agreement, Ali Health will also contribute CNY404.3 million ($58.7 million) to capital of Guizhou Ensure Chain. Following the transaction, Ali Health will hold approximately 25% of stakes of the target company, which owns over 1,000 pharmacies in China.
Alibaba Health also signed a deal with U.S.-based Merck & Company Inc (NYSE:MRK). in June to develop patient-centric digital services in China.
In May, Alibaba Group Holdings Ltd (NYSE:BABA), Ali Health’s parent company, injected part of its online pharmacy business into the company in a deal valued at HK$10.6 billion (1.4 billion). Following the deal, Alibaba received newly issued shares in Ali Health which took its stake in the firm to 56.2% from the previous 48.1%.
