Alibaba to Integrate Online Pharmacy Business into Alibaba Health
04.15.15
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The Firm is representing Alibaba Group Holding Limited (“Alibaba Group”) in connection with the recently announced integration of its online pharmacy business into Alibaba Health Information Technology Limited (SEHK:00241) (“Alibaba Health”) (the “Transaction”). Pursuant to the transaction, 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. Alibaba Group currently owns an effective equity interest of approximately 38% in Alibaba Health, and upon closing 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. The transaction values the Tmall online pharmacy business at approximately HK$19.4 billion (US$2.5 billion).
Closing 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. The Transaction is expected to close in the third quarter of 2015, subject to satisfaction of all closing conditions.
The Simpson Thacher team includes Celia Lam, Leiming Chen, Venus Lo, Yi Gao and Yang Wang (Corporate – Hong Kong); Jeffrey Knox (Regulatory – D.C.); and David Caldwell (Regulatory – New York).