Alibaba buys into health-care group

Shares in Meinian Onehealth Healthcare Holdings surged by the 10 percent daily limit on Monday after Alibaba and its affiliates said they would pay 7.3 billion yuan (US$1.03 billion) for a minority stake in the medical services provider. 

Alibaba China Network Technology and its investment affiliate Hangzhou Xintou Information Technology Co joined hands with Alibaba founder Jack Ma's private equity Yunfeng Capital to purchase a 16.2-percent stake in Meinian Onehealth from Shanghai Tianyi Asset Management. 

They will will pay 12.01 yuan a share, a 12-percent discount on its closing price last Friday.

The share price of the Shanghai-headquartered firm was 14.97 yuan after opening in the morning session on Monday. 

Yu Rong, Meinian's founder and chairman, will remain the largest shareholder with a 22.9-percent stake. 

Meinian said it will work closely with strategic investors and important partners such as Alibaba and its affiliates to enhance its digitalization and set up an innovative and collaborative technology platform. 

The investment is Alibaba's latest move into a health-care company. Ma has repeatedly said that health and happiness would be core strategies in the coming years. 

Earlier this year, Yunfeng Capital led the US$1.4 billion privatization of the Nasdaq-listed iKang Healthcare Group, another health examination along with Alibaba, Suning and Boyu Capital, which is also a leading player in medical examination.