Chinese business magnate Jack Ma will cede control of fintech giant Ant Group after a Communist Party crackdown on the nation’s tech sector that targeted the billionaire, APA reports citing Aljazeera.
The company said in a statement on Saturday it was adjusting its ownership structure so that “no shareholder, alone or jointly with other parties, will have control over Ant Group”.
In November 2020, Ant’s $37bn initial public offering (IPO), which would have been the world’s largest, was cancelled at the last minute. It led to a forced restructuring of the financial technology firm and speculation the Chinese billionaire would have to cede control.
Ma indirectly controlled 53.46 percent of Ant Group’s shares, making him the company’s “control person”. But now he will hold just 6.2 percent of the voting rights following the adjustment, according to the information in the statement.
“The adjustment is being implemented to further enhance the stability of our corporate structure and sustainability of our long-term development,” the Ant statement said.