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Alibaba Heath to buy group subsidiary's nutri-food business

The deal will bring more merchants into the online healthcare community, stabilise the firm's growth

Reuters  |  HONG KONG 

alibaba, China
Photo: Reuters

Ltd said on Friday controlling shareholder Group Holding Ltd would sell $488.3 million worth of food and nutritional products businesses to the company, further developing it into Alibaba's healthcare flagship platform.

will buy JK Nutritional Products Ltd from Group in a deal to be settled by the issue of 1.19 billion shares at $4.11 apiece, or a 6.16 per cent discount to the last close, the company said in a filing to bourse.

The deal will bring a broader set of merchants into the online healthcare community, while the company will obtain more stable and sustainable revenue growth, the Hong Kong-listed firm added.

saw its adjusted net loss narrowed to $14.3 million for the year ended in March, from a $23.45 million loss in the year-ago period amid rapid growth of its pharmaceutical e-commerce business.