According to a statement released by the company on Saturday, Chinese billionaire Jack Ma will no longer have control over Ant Group. This is because the fintech giant’s shareholders agreed to change the way they own shares.
Based on the statement Ma’s voting rights will drop to 6.2% after the change. Before the restructuring, Ma owned more than 50% of Ant’s voting rights through Hangzhou Yunbo and two other companies, according to the company’s IPO prospectus filed with the exchanges in 2020.
Ant also said in its statement that the change in voting rights, which is meant to make the company’s shareholder structure “more clear and diverse,” will not affect the financial interests of any shareholders.
JUST IN: Billionaire Jack Ma is giving up control of his company, Ant Group Co., as the tech billionaire further retreats from his online empire following the communist party’s unprecedented tech crackdown. pic.twitter.com/rJNiXzCXkn
— CryptoVinco (@CryptoVinco) January 7, 2023
Ant said that its 10 biggest shareholders, including Ma, had agreed to stop voting together and only vote on their own. This way, no shareholder would have “sole or joint control over Ant Group.”
After Chinese regulators shut down Ant’s $37 billion IPO in November 2020 and told the company to restructure its business, the voting rights were changed.
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Ant’s consumer finance unit applied to increase its registered capital from $1.2 billion to $2.7 billion as part of the company’s restructuring. A government notice sent out late last week says that the application was recently approved by the China Banking and Insurance Regulatory Commission.
After the fund-raising drive, Ant will own 50% of its most important consumer finance unit, while the city government of Hangzhou will own 10% of the unit. Since the beginning, both Alibaba and Ant have been based in Hangzhou.
Ant Group is a financial technology company that is connected to Alibaba. Both companies were started by Ma… Follow us only on Lee Daily for more news like this.