Chinese Billionaire Jack Ma Agrees to Relinquish Control of Fintech Giant Ant Group – Fintech Bitcoin News
Chinese billionaire Jack Ma recently agreed to relinquish control of Ant Group as part of changes to the fintech’s corporate structure, which will reportedly have no impact on “the financial interests of any Ant Group shareholders and their beneficiaries.” Once the process is complete, no single shareholder will have control over Ant Group, the fintech said in a statement.
Shareholders’ financial interests unaffected
Billionaire and Chinese fintech giant Ant Group’s controlling shareholder, Jack Ma, recently agreed to an arrangement that dilutes his stake and voting rights. As a result of these changes, Ma, who directly and indirectly controlled more than 50% of Ant Group, will see this influence reduced to just 6%.
According to a statement issued by the fintech firm on January 7, the alignment with Ant Group’s respective shareholders’ rights will see “the founder, the representative of our management and employees exercise their voting rights independently”. Nevertheless, the adjustment is not expected to change or adjust the shareholders’ respective financial interests.
“The adjustment is being implemented to further improve the stability of our corporate structure and the sustainability of our long-term development. The adjustment will not result in any change in the financial interests of any Ant Group shareholders and their beneficiaries,” Ant Group said in a statement.
Chinese authorities are still expected to fine the ant group
The fintech giant added that once the adjustment process is completed, no shareholders including Ma will “enter into any form of concert party arrangements with any other party” or “seek control of Ant Group alone or jointly with any other party.” However, the changes do not affect Ant Group’s day-to-day operations, the statement added.
Although Ma, who has been targeted by Chinese regulators in the past, has reportedly agreed to relinquish control of the fintech firm, a report suggests authorities in China will still fine Ant Group $1 billion. Furthermore, the fintech said the changes to its corporate structure do not mean it is reviving its much-touted $37 billion IPO.
Meanwhile, following this announcement, the share price of Ant Group affiliated firms as well as e-commerce giant Alibaba reportedly rose by 5%.
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