Jack Ma to hand over control of Ant Group as part of company restructuring

The company announced on Saturday that Chinese billionaire Jack Ma would hand over control of fintech giant Ant Group as part of a restructuring.

“No shareholder shall, singly or jointly with other parties, have controlling ant group (after the adjustments are completed), the company said in a statement.

“The adjustments are being implemented to further enhance the stability of our corporate structure and the sustainability of our long-term growth.”

The statement laid out the company’s previously complex structure that saw Ma “indirectly” control 53.46 percent of Ant Group’s shares.

“As a result, Mr Jack Ma (was) considered the controlling person of Ant Group prior to the adjustment,” it said.

Beijing has targeted major technology firms in recent years, and withdrew Ant’s planned initial public offering in Hong Kong at the last minute in 2020. The listing would have been a world record at the time.

the officers also killed alibabawhich Ma co-founded and formerly led, fined a record $2.75 billion (roughly Rs. 22,600 crores) for alleged unfair practices.

This week regulators announced that Ant has secured approval for its consumer finance arm to raise CNY 10.5 billion (roughly Rs. 12,300 crores), in another sign that authorities may be loosening their grip on the firm.

Ma holds voting rights in the entity that controls Ant, along with nine Ant officers and employees, who were also granted voting rights. Together, they jointly control the company, the statement said.

Ma owns only a 10 percent stake in Ant, affiliated with e-commerce giant Alibaba Group Holding.

He is said to have exercised control over the company through related entities, according to Ant’s initial public offering (IPO) prospectus filed with the exchanges in 2020.

Ma has mostly disappeared from public view since making a speech criticizing regulators on the eve of the canceled Ant listing in 2020.