Jack Ma to Reportedly Cede Control of Ant Group, Seen as Boost for Alibaba’s Stake
2022.07.28 15:42
Jack Ma to Reportedly Cede Control of Ant Group, Seen as a Boost for Alibaba’s Stake
By Senad Karaahmetovic
Jack Ma, the co-founder and former executive chairman of Alibaba Group (NYSE:BABA), is ready to cede control of Ant Group, according to a report in the Wall Street Journal.
The fintech giant is looking to reduce its dependency on Jack Ma as it works with the government to overhaul its business. The Chinese government targeted Jack Ma in a bid to reduce his influence on the country’s booming tech sector.
Ant hopes that by reducing the influence of Ma it will be able to finally go public. The company was supposed to be valued at over $300 billion had it gone public earlier.
“Jack Ma’s absence from Ant Group should not affect operations” but it could expedite IPO plans, according to Bloomberg Intelligence’s Analyst Catherine Lim.
Ma currently controls 50.52% of Ant’s shares, although he doesn’t have an executive role or sit on the board. The report notes that one of the options discussed is Ma transferring some of his voting power to other Ant officials including Chief Executive Eric Jing.
“This can help realise the value of Alibaba’s 30-plus holding in Ant,” Lim added.
Ma’s desire to lower the grip on Ant Group won’t surprise many people as he was reportedly contemplating such actions for years.
The company has already informed regulators about Ma’s intentions while it works to become a financial holding company. Regulators “have given their blessing”, the report added.
Ant Group is yet to receive an official green light from the People’s Bank of China to become a financial holding company.
