24.09.2022
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WSJ learns of Jack Ma’s willingness to relinquish control of Ant Group

Jack Ma, founder of Chinese online retailer Alibaba

Jack Ma, founder of Chinese online retail giant Alibaba, plans to relinquish control of Ant Group. The fintech giant is considering such changes in a bid to shake off the pressure of Chinese regulators, writes The Wall Street Journal.

Alibaba shares are down 0.97% in premarket trading to $101.78 a share, according to New York Stock Exchange trading data as of 2:55 pm Moscow time.

Alibaba announces plans to obtain primary listing status in Hong Kong Alibaba , IT , Retail , Listing , Hong Kong Exchange

WSJ learned of Jack Ma's willingness to relinquish control of Ant Group1

The transfer of control by Jack Ma could delay the resumption of the Ant Group’s initial public offering by more than a year, as required by the regulations in force for the securities market in China. At the moment, Jack Ma does not hold any position in the Alibaba subsidiary, but controls 50.52% of the voting shares of the payment platform. The billionaire may hand over part of his voting share to Ant executives, including the company’s CEO Eric Tszin, Bloomberg notes.

Ant Group has already informed the regulator about Jack Ma’s intention to transfer control of the company. According to Bloomberg, citing people familiar with the situation, the regulator did not call for such actions, but approved this decision.

Alibaba BABA $101.6 (-0.92%) 1d 1n 1m 3m 1g All time Schedule…

In November 2020, Ant Group’s IPO failed, which was supposed to be the largest in history. The company planned to listing on two sites at once – in Hong Kong and Shanghai – and raise up to $ 34.4 billion. Jack Ma proposed to nationalize part of the assets of Ant Group, but this did not help prevent the cancellation of the IPO. After the placement fell through, the Chinese authorities advised the billionaire not to leave the country.

After these events, an antitrust investigation began against Alibaba. This message brought down the shares of the online retailer by 11%, and capitalization Alibaba by $80 billion. From a high of $319.32 per share in October 2020, the Chinese Internet retailer lost almost 70% to close on July 28 at $102.78 per share, trading data show.

Ant Group itself agreed in April 2021 to undertake a massive restructuring to become a financial holding and come under the supervision of China’s central bank.

The company’s market value, calculated from the number of company shares multiplied by their current price. Capitalization of the stock market – the total value of securities circulating in this market. The procedure for including a security in the list of assets traded on the stock exchange.

Source: RBC

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