The Wall Street Journal reported on Thursday that Chinese billionaire Jack Ma intends to give up control of Ant Group Co. The move comes as part of the fintech giant’s effort to win over regulators after a protracted crackdown. The transfer of control by Ma might delay Ant’s initial public offering by a year or more. The publication cited Chinese securities regulations that call for a suspension of public listings for businesses that have undergone a change of ownership.
Is there any official announcement yet?
As of now, Alibaba has not yet made any public comments about it. Before the bell, the company’s US-listed shares were trading down. Jack Ma, one of China’s most well-known businessmen, has been the subject of government action. The same seems to have been taken to lessen his influence and the power of his firms.
He has had control over the company for more than ten years now. During this time, under his leadership, the company grew into a giant that now controls the Alipay payments network. Notably, it has more than one billion users, as well as a sizable microlending operation and an investment platform that previously housed the largest money-market fund in the world. The value of Ant was projected to exceed $300 billion if it went public.
Ant has undergone a comprehensive restructuring in China
Ma has a dominant position despite not holding an executive position or being on the board. As per sources, he may have given up control by giving up some of his voting rights to other Ant leaders. It can be someone such as Chief Executive Eric Jing so that they would then all have collective authority over the business.
According to a Reuters report from last year, Ant was looking into ways for Jack Ma to give up control of and sell his interest in the leading financial technology company. Ant, a unit of Alibaba, has undergone a comprehensive restructuring in China. It was after the country’s regulators halted its $37 billion initial public offering in late 2020. After the cancellation, the company started a regulatory-driven reorganization plan. It helped the company transform into a financial holding company.