E-COMMERCE giant Alibaba Group Holding Ltd. is considering whether to launch an appeal against a Hong Kong regulator’s finding that it breached takeover rules by buying an effective majority stake in a health care firm in 2014 without extending the offer to all of its shareholders.

    Alibaba said late Monday that the Hong Kong Takeovers and Mergers Panel, part of city’s Securities and Futures Commission (SFC) watchdog, found it broke rules by arranging a deal with certain investors in CITIC 21CN, now known as Alibaba Health Information Technology Ltd., at beneficial terms not extended to other shareholders.

    The SFC ruled that the breach of code in the 2014 investment meant an original waiver to a requirement to launch a general offer to all investors was invalidated, Alibaba said. But the e-commerce firm said the regulator issued a new waiver in view of the sharp rise in Alibaba Health stock since 2014, meaning Alibaba is not currently required to launch a full buyout.

    Alibaba said in the statement it believes it fully complied with the takeover code regarding the investment, worth US$170 million at the time, which gave it a 54 percent stake in the health care business after buying newly issued shares in the company.

    Alibaba noted it was granted a waiver by the full offer requirement, given that the stock has soared more than six-fold since the 2014 offer.

    An Alibaba spokesman said the firm is considering appealing against the SFC ruling but declined to elaborate.

    (SD-Agencies)