Chinese billionaire Jack Ma agrees to hand over control of fintech group Giant Ant – Fintech Bitcoin News

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Chinese billionaire Jack Ma recently agreed to relinquish control of Ant Group as part of changes to the fintech’s corporate structure that supposedly won’t impact “shareholders’ economic interests.” of Ant Group and their beneficiaries”. Once the process is complete, no single shareholder will have control of Ant Group, the fintech said in a statement.

Economic interests of unaffected shareholders

Billionaire and majority shareholder of Chinese fintech giant Ant Groups, Jack Ma, recently agreed to an arrangement 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 that influence reduced to just 6%.

According to a statement released by the fintech company on January 7, the adjustment of the rights of the respective shareholders of the Ant groups will see “the founder, representative of our management and our employees exercising their voting rights independently”. However, the adjustment should not modify or adjust the respective economic interests of the shareholders.

“The adjustment is being implemented to further strengthen the stability of our corporate structure and the sustainability of our long-term development. The adjustment will not result in any change to 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 form of arrangement in concert with any other party” or “seek control of Ant Group alone. or jointly with another party”. The changes do not affect day-to-day operations of Ant groups, however, the statement added.

Although Ma, who has been targeted by Chinese regulators in the past, has apparently agreed to cede control of the fintech company, a report suggests that Chinese authorities will still impose a $1 billion fine on Ant Group. Additionally, the fintech said changes to its corporate structure do not mean it is relaunching its highly publicized $37 billion initial public offering.

Meanwhile, following the announcement, the share price of companies linked to Ant Group as well as that of e-commerce giant Alibaba are all said to have risen by 5%.

What are your thoughts on this story? Let us know what you think in the comments section below.

Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer in Zimbabwe. He has written extensively on the economic issues of some African countries as well as how digital currencies can provide an escape route for Africans.

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