Chinese billionaire Jack Ma will no longer control Ant Group – shareholders of the financial giant have agreed to change the shareholding structure, CNN reports, citing a company statement.
After the correction, Jacek Ma’s share in shareholder votes will fall to 6.2 percent. CNN pointed out. Before the change, the Chinese billionaire owned over 50 percent. votes in Ant through Hangzhou Yunbo and two other entities, the portal explains, referring to the 2020 prospectus.
Jack Ma loses control of the Ant Group
Ant Group added in a statement that the adjustment of voting rights is intended to make the company’s shareholding structure “more transparent and diversified” and will not result in any changes to the economic interests of any of the shareholders.
The company said its 10 major shareholders, including Ma, have agreed to vote exclusively independently, and therefore no shareholder will have “sole or joint control of Ant Group.”
The voting rights review comes after Chinese regulators refused to allow Ant to receive $37 billion for development from its November 2020 IPO and ordered the company to restructure its operations. A month earlier in Shanghai, Ma had criticized China’s financial regulation system and state-owned banks.
As part of the restructuring, Ant’s Consumer Finance division has filed for a $1.2 billion share capital increase. to $2.7 billion According to a government notification issued late last week, China’s Banking and Insurance Regulatory Commission approved the application.
After the fundraising, Ant will control half of its key consumer finance unit, while an entity controlled by the Hangzhou city government will own 10 percent. shares. Alibaba and Ant have been based in Hangzhou since the beginning, according to CNN.
Ant Group is a fintech affiliate of Alibaba – both entities were founded by Ma – explained the portal.
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