Meinian shares jump after stake offer 
2019-10-29
Shares in Meinian Onehealth Healthcare Holdings surged by the 10 percent daily limit yesterday 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 Alibaba founder Jack Ma’s private equity Yunfeng Capital will purchase a 16.2 percent stake in Meinian from Shanghai Tianyi Asset Management. 
They will pay 12.01 yuan per 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 yesterday. 
Yu Rong, Meinian’s founder and chairman, will remain the largest shareholder with a 22.9 percent stake. 
Alibaba and its investment affiliate Hangzhou Xintou Information Technology Co will become the second-biggest shareholder with a 10.8 percent stake. 
According to Meinian, 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 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, Suning and Boyu Capital, which is also a leading player in medical examination.
