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Ant Group’s founder Jack Ma will give up control of the China-based fintech titan as state regulators continue to oversee a comprehensive strategic review of business operations.
Ant had its initial public offering (IPO) canceled at the last minute by state regulators before being forced to restructure and Ma reportedly asked to cede control. Reuters reported in November that Ant is set to be the subject of a fine worth more than $1 billion.
Ant announced changes on Saturday with Ma’s voting rights now set to drop from over 50%+ to 6.2%, according to Reuters. The billionaire and founder of e-commerce giant Alibaba (NYSE:BABA) has a 10% stake in Ant. Alibaba is reported to have a 33% stake.
“Jack Ma’s departure from Ant Financial, a company he founded, shows the determination of the Chinese leadership to reduce the influence of large private investors,” said Andrew Collier, managing director of Orient Capital Research, according to Reuters.
“This trend will continue the erosion of the most productive parts of the Chinese economy.”
In a separate statement on Sunday, Ant said it currently has no plans to initiate an IPO.
“Ant Group has been focusing on its business rectification and optimisation, and does not have a plan for an IPO,” the company spokesperson said.
This is despite a report in the Financial Times that British Prime Minister Rishi Sunak met Arm’s Chief Executive Rene Haas last month in London. SoftBank’s CEO Masayoshi Son also joined the meeting via video.
Sunak is pushing for Ant to list its shares in London with the meeting described as “very constructive” by people briefed on the matter, according to the FT.
It is important to note that China’s authorities require businesses to wait three years after a change in control before listing their shares.
Alibaba stock is up about 5% in pre-market Monday.
