Alibaba stock gains on report it may sell shares to Ant

Alibaba’s Hong Kong-listed shares (HK:) gained 3.2% on Monday after Bloomberg News reported that the tech giant is considering selling shares to Ant Group.

Ant has proposed to buy back 7.6% of its shares, providing early investors with a chance to cut stakes in the fintech startup following the conclusion of a years-long regulatory probe.

Each investor would be allowed to sell up to 7.6% of their equity. The plan values Ant as $78.5 billion, nearly 70% down from the planned 2020 IPO valuation.

Alibaba (NYSE:) took a 33% stake in Ant in 2018.