Alibaba tightens grip on Chinese healthcare via Wandong investment

 08-Jun-15, Business Finance News

Alibaba Group Holding Ltd.’s Executive Chairman and Lead Founder, Jack Ma is reported to have tighten his grip on China’s healthcare sector. In recent news, Mr. Ma is stated to have capitalized nearly $142 million in China Resources Wandong Medical Equipment.

Image: Business Finance News

The investment is said to be processed through a private equity fund management firm; Yungfeng Capital. Furthermore, the investment comes from a pool of other members of the firm as well.

Yungfeng Capital is reported to have undertaken a subscription of 5.7 million shares for a 2.35% stake, reportedly worth almost a $32 million. Funds are reported to be raised via a private placement.

The move by Alibaba comes through its healthcare business unit; Alijk. The agreement between the two entities requires Alijk to provide medical imaging services online, while Wandong will provide critical analysis of the patients’ health, based on the medical images provided by Alijk, which include CT and MRI.

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