Ant Group’s founder Jack Ma will no longer control the China-grown fintech giant. The firm’s shareholders have reportedly agreed to implement a series of adjustments that will see Ma gradually give up most of his voting rights, the group said on Saturday.
Ant, in its note, said that Ma and nine other major shareholders had agreed to no longer act in concert when exercising their voting rights, and would only vote independently, Reuters reported. Ma previously possessed more than 50 per cent of voting rights at Ant. Now, after the changes, his share will fall to 6.2 per cent, according to the Reuters report. Ma’s investment vehicle Hangzhou Yunbo had control over two other entities that own a combined 50.5% stake in Ant, the company statement said.
The change will see 10 individuals, the founder, management, and employees, getting voting rights independently.
Ant also said it now would add a fifth independent director to its board so that independent directors will comprise a majority of the company’s board. It currently has eight board directors.
“As a result, there will no longer be a situation where a direct or indirect shareholder will have sole or joint control over Ant Group,” the fintech company said in its statement on Saturday.
Ant Group’s IPO
Ant Group’s IPO was abruptly suspended in late 2020, which sent shockwaves in the market. Alibaba owns 33% of Ant. The fintech company had prepared for a dual listing on the Shanghai and Hong Kong stock exchanges and raised $34.5 billion in its pre-IPO fundraising round. The IPO was pegged as the largest in history and generated a great deal of interest among investors.
On November 3, 2022, the Shanghai Stock Exchange announced that it had suspended the listing of Ant Group due to “significant changes in the financial technology regulatory environment”. This was followed by a similar announcement from the Hong Kong Stock Exchange.
