BEIJING (dpa-AFX) - Chinese e-commerce giant Alibaba Group Holding Ltd. (BABA) said Tuesday that it has agreed to transfer the operations of its Tmall online pharmacy business to Hong Kong Stock Exchange-listed Alibaba Health Information Technology Ltd. in consideration for newly issued shares and convertible bonds of Alibaba Health.
Alibaba Group currently owns an effective equity interest of about 38% in Alibaba Health, and upon completion of the deal, Alibaba Group's effective equity ownership of Alibaba Health will increase to about 53%, or about 54.6% assuming the full conversion of the convertible bonds upon maturity, and Alibaba Health will become a consolidated subsidiary of Alibaba Group.
Alibaba Group expects the deal to complete in the third quarter of 2015.
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