Alibaba, Yunfeng Capital Acquire 54% of CITIC 21CN For $170M


Hangzhou-based Chinese e-commerce giant Alibaba Group has acquired 54% in Chinese pharmaceutical data firm CITIC 21CN for around HK$1.3 billion (US$170 million), according to a security filing.

Hong Kong-listed CITIC 21CN is a subsidiary of Chinese state-owned conglomerate CITIC Group.

Aside from Alibaba, Yunfeng Capital, a Shanghai-based private equity firm set up by Alibaba’s founder Jack Ma in 2010, is also participating as an acquirer.

The buyers acquired 4.4 billion new shares of CITIC 21CN at HK$0.30, a 64% discount to the company’s share price before the announcement of the deal.

Alibaba will replace five of the six executive directors on CITIC 21CN’s board.

CITIC 21Cn’s vice chairwoman Chen Xiaoying will retain her 10% stake and remain as an executive director. CITIC Group will also retain its 10% stake.

The companies say that CITIC 21CN will continue its existing business, and Alibaba will possibly inject complementary businesses in the future.

 
China Money Network Subscription

RELATED NEWS