Jack Ma —founder of Chinese e-commerce giant Alibaba— will cede control of fintech firm AntGroup, the world’s best valued FinTech company and one of the most valuable unicorns in recent years. This, as part of a restructuring, the company announced on Saturday, January 7.
As you remember, Jack Ma withdrew from the public eye after Beijing halted Ant Group’s Hong Kong listing in 2020, following his scathing comments about government regulators.
Now, this Saturday, the company announced that “no shareholder, alone or jointly with other parties, will have control of Ant Group” once the adjustment is complete.
This adjustment is carried out to further strengthen the stability of our corporate structure and the sustainability of our long-term development.
Ma “indirectly” controlled 53.46% of Ant Group’s shares. After this change, it will only have 6.2% of the voting rights, the statement said. However, the agreement will not change the economic interests of the shareholders.
Background
AntGroup is the operator of Alipay, the world’s largest digital payment platform, with hundreds of millions of monthly users in China and abroad.
When it announced its IPO in Hong Kong in 2020, it was estimated to cost US$34 billion, which was a record at the time.
For its part, the Communist Party launched a crackdown on the country’s tech sector at the time, which was targeting Ma, imposing fines for competition and personal data issues.
Repression
In a speech at a summit in Shanghai, the tycoon said banks operated with a “pawnshop” mentality and accused financial watchdogs of stifling growth.
In response, Alibaba, the internet giant co-founded by Jack Ma, where popular shopping platforms such as Taobao and Tmall operate, was hit with a record $2.75 billion fine for alleged unfair practices.
Changes
However, the control of the authorities appears to be waning, after they indicated in December that Ant had won approval to raise 10.5 billion yuan ($1.5 billion).
An office of the China Banking and Insurance Regulatory Commission in the southwestern city of Chongqing will allow the company to increase its capital from 8 billion yuan ($1.171 million) to 18.5 billion yuan ($2.708 million), according to information known on December 30, 2022.
News of the approval sent Alibaba soaring nearly 9% on the Hong Kong stock market, while other technology companies were also spurred on by hopes that the crackdown on the sector may be easing. However, the latest data on its earnings in November showed a loss of 20.6 billion yuan ($3.894 million) for the third quarter.
In addition, the company avoided disclosing sales during the famous Singles’ Day, for the first time. For his part, Ma has kept a lower profile since Ant’s failed IPO, marked by appearances at charity events and occasional stays abroad.
It should be noted that Jack Ma He is one of the most recognized businessmen in China, with an atypical career and a charismatic personality, he leads a generation of technology magnates from the Asian country.
Source: Larepublica
Kingston is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
