Alibaba-W has completed a private placement of zero-coupon exchangeable bonds with a total principal amount of HKD 12.023 billion
Alibaba-W has completed a private placement of zero-coupon exchangeable bonds amounting to HKD 12.023 billion, which will mature in 2032. The bonds can be exchanged for shares of Alibaba Health at specific times, with an initial exchange ratio of approximately 160,513.6 shares for every HKD 1,000,000 of bonds, and an initial exchange price of HKD 6.23 per share. Alibaba Group holds approximately 64% of Alibaba Health's shares and is expected to continue driving the transformation of the healthcare industry in the future
According to the Zhitong Finance APP, Alibaba-W (09988) announced that it has completed a private placement of zero-coupon exchangeable bonds with a total principal amount of HKD 12.023 billion, maturing in 2032. The bonds will be sold offshore to certain non-U.S. persons outside the United States under Regulation S of the Securities Act of 1933, as amended.
Bondholders may choose to exchange all or any portion of the bonds at any time from the 41st day after the bond issuance date until the close of trading on the fifth scheduled trading day prior to the bond maturity date. Upon exchange, the company may elect to fulfill its exchange obligation by delivering shares of Alibaba Health, cash, or a combination of cash and shares of Alibaba Health, in accordance with the terms specified in the bonds. The initial exchange ratio is approximately 160,513.6 shares of Alibaba Health for every HKD 1,000,000 principal amount of bonds, which corresponds to an initial exchange price of HKD 6.23 per share of Alibaba Health. This initial exchange price represents a premium of 48% over the HKD 4.21 price per share of Alibaba Health in the hedge placement.
Alibaba Health is a consolidated subsidiary of Alibaba Group, which holds approximately 64% of its shares. Alibaba Group expects that after the future exchange of the bonds for shares of Alibaba Health, Alibaba Health will continue to be Alibaba Group's flagship healthcare platform and consolidated subsidiary, and will continue to work closely with Alibaba Health and members of the Alibaba ecosystem to promote the transformation of the "Artificial Intelligence + Healthcare" industry
