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Yunfeng Capital, Alibaba to buy CITIC 21CN for $171m

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Yunfeng Capital and Alibaba Group together plan to buy a 54.3% stake in pharmaceutical data provider CITIC 21CN, a Hong Kong-listed subsidiary of Chinese conglomerate CITIC Group, for HK$1.33 billion ($171 million).

Alibaba, through its wholly-owned investment entity Perfect Advance, will acquire 4.4 billion CITIC 21CN shares at HK$0.3 apiece, representing a 64% discount on the closing price of last trading day, according to a regulatory filing.

Yunfeng, a private equity firm co-founded by Alibaba chairman Jack Ma, will buy a 29.79% stake in Perfect Advance through Yunfeng Fung II, before the share sale is completed. Upon completion of the deal, Alibaba will own 38.1% of CITIC 21CN and Yunfeng 16.2%.

CITIC 21CN  is an integrated information and content service provider which mainly engages in software development and services for drug authentication, tracking and logistics. The company's five existing directors, including Wang Jun, former chairman of CITIC Group, will be replaced by Alibaba's nominees.

Alibaba intends to continue CITIC 21CN''s existing business and further expand its domestic drug data platform, as well as to develop a data standard for medical and healthcare products. This may involve the possible injection of certain complimentary businesses by Alibaba, or other forms of cooperation, the filing said.

 

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