Chinese billionaire Jack Ma recently agreed to cede control of Ant Group as part of changes to the fintech corporate structure, which will reportedly not have an impact on “the economic interests of 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.
Economic interests of unaffected shareholders
Billionaire and controlling shareholder of Chinese fintech giant Ant Group, Jack Ma, recently agreed to a deal that dilutes his shareholding and voting rights. As a result of these changes, Ma, who directly and indirectly controlled more than 50% of Ant Group, will see his influence reduced to just 6%.
according to a declaration Issued by the fintech firm on Jan. 7, the adjustment to Ant Group’s respective shareholder rights will see “the founder, representative of our management and employees exercise their voting rights independently.” Even so, the adjustment is not expected to alter or adjust the respective economic interests of the shareholders.
“The Adjustment is being implemented to further enhance the stability of our corporate structure and the sustainability of our long-term development. The Adjustment will not result in any change in the economic interests of Ant Group shareholders and their beneficiaries,” Ant Group said in a statement.
Chinese authorities still expected to fine Ant Group
The fintech giant added that once the adjustment process is complete, no shareholder, including Ma, will “enter into any kind of concert party arrangement with any other party” or “seek control of Ant Group alone or together with any other part”. 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, reportedly agreed to cede control of the fintech firm, one report suggests that authorities in China will still impose a $1 billion fine on Ant Group. Furthermore, the fintech said the changes to its corporate structure do not mean it is reviving its much-hyped $37 billion initial public offering.
Meanwhile, following this announcement, the share price of Ant Group-linked companies, as well as that of e-commerce giant Alibaba, reportedly rose by 5%.
What are your thoughts on this story? Let us know what you think in the comments section below.
image credits: Shutterstock, Pixabay, Wiki Commons, THINK A / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or a solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
