[The Epoch Times, July 29, 2022](The Epoch Times reporter Xu Jian comprehensive report) According to an exclusive report by The Wall Street Journal, under the so-called “rectification” required by the CCP, Chinese billionaire and Alibaba Group founder Jack Ma plans to Giving up control of fintech company Ant Group has accelerated the “decoupling” of the company from Alibaba Group.
In 2020, when Ant Group planned an initial public offering of US$37 billion, it was stopped at the last minute by Chinese regulators, and the technology company was then forced to undergo a comprehensive reorganization into a financial holding company regulated by the Chinese central bank.
Insider: Ma Yun dilutes control by transferring shares
Although Jack Ma does not have any position in the Ant Group, he is very important in the company and currently controls a 50.52% stake in Ant Group through an entity he dominates, Hangzhou Yunbo Investment Consulting Co., Ltd. Ma holds a 34% stake in Hangzhou Yunbo.
The “Wall Street Journal” reported on the 28th that some people familiar with the matter said that Jack Ma could dilute his voting rights in Hangzhou Yunbo by giving up his veto power and transferring some shares to other executives, thereby giving up his interest in Ant Gold. control of the service.
This is not the first time that foreign media reported that Jack Ma gave up his shares in Ant. In April last year, Reuters revealed that Jack Ma might give up control of Ant. This move is considered to be under the pressure of the CCP’s regulators, and Ant Group was forced to draw a clear line with Alibaba. boundaries.
Reuters also revealed at the time that between January and March, officials from the People’s Bank of China and the Mainland Banking and Insurance Regulatory Commission (CBIRC) held talks with Ma and Ant, respectively, to discuss the possibility of Ma’s exit from the company.
The Wall Street Journal reported more than a month ago that Jack Ma expressed “willingness” to hand over some control of Ant to the Chinese government at a meeting with regulators in November.
Supervision deteriorates, ant and Ali speed up the cut
Under the strict supervision of the CCP, Ant Group is speeding up to draw a line with Alibaba. On Tuesday (July 26), when Alibaba released its 2022 fiscal year annual report, Alibaba said that nine senior executives including the chairman of Ant Group have withdrawn from Alibaba and its subsidiaries. The top management of the companies, the two companies also terminated long-term business and data-sharing agreements.
After spun off Ali from Ant Group’s predecessor asset more than a decade ago, Jack Ma built it into an Alipay network with more than 1 billion users, a platform for large money market fund investments and small loan businesses. Before Ant filed its IPO prospectus in August 2020, Jack Ma transferred two-thirds of Ant Group’s shares to three executives.
Ant Group’s IPO plan may be delayed again
If Jack Ma’s ownership is diluted, it could delay Ant’s potential IPO restart by a year or more. Companies that have recently experienced a change of control are suspended from public listings, as required by China’s securities regulations.
Ant Group is in no rush to try an IPO again and intends to keep options open, people familiar with the matter said, saying the company may consider other moves, including spinning off subsidiaries and letting them go public on their own.
However, some analysts said that Ant is still expected to be listed within this year.
Responsible editor: Lin Yan#