Ant Group founder Jack Ma to relinquish control in major update |
SHANGHAI/HONG KONG, 7 january (Reuters) – Ant Group founder Jack Ma will relinquish control of the Chinese fintech giant in an overhaul that seeks to draw the line under regulatory pressure that began shortly after its mammoth stock market debut. two years ago.
Ant’s world’s largest 37 billion 20 dollar IPO20at the last moment in November cancellation and it was from a financial technology firm mandatory leading to restructuring and speculation that the Chinese billionaire would have to relinquish control.
While some analysts said the relinquishment could clear the way for the company to revive its IPO, the changes announced by the group on Saturday would result in a further delay due to listing rules.
China’s local A-share market requires companies to wait three years after a change of control to list. The waiting period in Shanghai’s Nasdaq-style STAR market is two years, and in Hong Kong it is one year.
Ma, a former English teacher, previously held more than 50% of Ant’s voting rights, but Reuters estimates the changes will mean his stake will fall to 6.2%.
Ma only works at Ant, an affiliate of e-commerce giant Alibaba Group Holding Ltd ( 9988.HK 10% share but Ant’s 2020According to the IPO prospectus presented to the stock exchanges in
According to the prospectus, Hangzhou Yunbo, an investment vehicle for Ma, had control over two other enterprises that held a combined 50.5% stake in Ant.
Reuters reported in November that Ma’s relinquishing of control comes as Ant nears completion of a two-year regulatory restructuring, with Chinese authorities giving the firm 1 billion is preparing to impose a fine of more than $
The expected punishment is part of Beijing’s sweeping and unprecedented crackdown on the country’s tech titans over the past two years, which has shaved hundreds of billions of dollars off their values and slashed revenues and profits.
But Chinese authorities have softened their stance on tech pressures in recent months amid efforts to shore up the $17 trillion economy, which has been hit hard by the COVID-19 pandemic.
“With China’s economy at a fever pitch, the government is trying to signal its commitment to growth, and as we know technology, the private sectors are key to that,” said Duncan Clark, chairman of investment advisory firm BDA China.
“At least Ant investors can (now) have a timetable for an exit after a long period of uncertainty,” said Clark, who authored a book on Alibaba and Ma.
regulatory review
Ant operates Alipay, China’s ubiquitous mobile payment app, the world’s largest with more than 1 billion users.
Ant, whose businesses include distribution of consumer loans and insurance products, said Ma and his other nine major shareholders had agreed to no longer act jointly when exercising their voting rights and would only vote independently.
It added that shareholders’ economic interests in Ant will not change as a result of the amendments.
Ant also said he would add a fifth independent director to the board so that independent directors make up the majority of the company’s board. It currently has eight boards of directors.
“As a result, there will be no situation in which a shareholder, directly or indirectly, will have sole or joint control over Ant Group,” the statement said.
Reuters reported in April 2021 that Ant was exploring options to divest Ma, one of China’s most successful and influential businessmen, of Ant’s stake and relinquish control.
The Wall Street Journal in July of last year, citing unnamed sources news said Ma could cede control by delegating some of his voting power to Ant officials, including Ant’s chief executive Eric Jing.
Ant’s market listing in Hong Kong and Shanghai, Ma 2020It derailed days after he publicly criticized regulators in a speech in October. Since then, his sprawling empire has been under regulatory scrutiny and undergoing restructuring.
The once outspoken Ma has been out of the public eye since a regulatory crackdown that curbed the country’s tech giants and removed the laissez-faire approach that fueled rapid growth.
“Jack Ma’s departure from Ant Financial, which he founded, shows the Chinese leadership’s determination to reduce the influence of large private investors,” said Andrew Collier, managing director of Orient Capital Research.
“This trend will continue to erode the most productive parts of the Chinese economy.”
Reuters last year news As Chinese regulators crack down on monopolies and unfair competition, Ant and Alibaba are separating their operations and looking for new business independently.
Ant said on Saturday that his leadership would no longer serve on the Alibaba Partnership, a body that could nominate a majority of the e-commerce giant’s board, confirming a change that began in the middle of last year.
Reporting by Yingzhi Yang and Brenda Goh in Shanghai and Kane Wu in Hong Kong; Written by Sumeet Chatterjee; Edited by William Mallard and Jacqueline Wong
Our standards: Thomson Reuters Trust Principles.
2023-01-08 04:45:01
Source – reuters
Translation“24 HOURS”