Control Is Being Lost Because of Economic Interests. Chinese billionaire Jack Ma recently agreed to relinquish control of Ant Group as part of a restructuring of the fintech company that is expected to not affect “the economic well-being of shareholders.” of Ant Group and the beneficiaries. Once the process is complete, no single shareholder will have control of Ant Group, the fintech said in a statement.
The Economic Interests of The Shareholders are Not Wffected
Billionaire and majority shareholder of Chinese Fintech Giant Ant Group, Jack Ma, recently admitted to an arrangement that undermines his share and voting rights. Following these changes, MA, which directly and indirectly controlled more than 50% of the ANT group, will see this influence reduced to only 6%.
According to a statement published by Fintech in January. 7, the amendment of the rights of the shareholders of the Ant group will see “the founder, the representative of our management and our employees exercise the right to vote independently”. However, the change should not change or change the economic interests of the shareholders.
“This change is being made to strengthen the stability of our company and support our long-term development. The amendment will not make any changes to the economic interests of all Ant Group shareholders and beneficiaries,” Ant Group said in a statement.
The Chinese Authorities Still Hope That It Will Be a Good Ant Group
The Fintech giant added that once the restructuring process is completed, none of the shareholders, including Ma, will enter into any kind of strategic partnership with others or “want to control Ant Group alone or collaborate with others.” cooperate.”
These 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, has agreed to relinquish control of the fintech company, a report suggests that Chinese authorities will still pay $1 billion in taxes to Ant Group. Also, the fintech said its company’s restructuring does not mean it is resuming its much-publicized $37 million initial public offering.
Meanwhile, following the announcement, the company’s shares linked to Ant Group and owned by e-commerce giant Alibaba are said to have risen by 5%.