Jakarta, CNBC Indonesia – Ant Group is reportedly exploring options for company founders, Jack Ma, to divest its shares. This could help to attract scrutiny by Chinese regulators looking to restructure Ant Group. This is the Reuters report, citing a number of sources as reported by CNBC Indonesia, Sunday (18/4/2021).
Reuters reports for the first time the details of the latest round of meetings being held on the future of Jack Ma’s control of Ant through the complex structure of the investment vehicle. Earlier, The Wall Street Journal reported in a November meeting with regulators, Jack Ma had offered a portion of Ant’s stake to the Chinese government.
Reuters wrote that officials from the Central Bank of China and the China Banking and Insurance Regulatory Commission held talks between January and March with Jack Ma and Ant separately. One possibility discussed was the tycoon’s exit from the company.
“The divestment of Jack Ma’s stake in Ant Group has never been the subject of discussion with anyone,” an Ant spokesman said in a question.
Reuters has not been able to determine whether Ant and Jack Ma will proceed with the divestment option. If so, which option to choose. The company hopes that Jack Ma’s shares, which are worth billions of US dollars, can be sold to existing investors in Ant or an affiliate of Alibaba Group Holding Ltd without involving any external entities.
However, one source close to the company said, during discussions with regulators, Jack Ma was told he would not be allowed to sell his shares to entities or individuals close to him. On the contrary, Jack Ma had to come out in full. Another option is to transfer the shares to Chinese investors affiliated with the state. Each step will require Beijing’s approval.
The notes provided by the sources are consistent in terms of the discussion timelines of the past months. One source at the company said Jack Ma met regulators more than once before Chinese New Year, namely in early February. A second source said Ant began working on options regarding Jack Ma’s possible exit from the company a few months ago.
Ant spokesman did not provide any comment regarding this news. Neither is Alibaba, the Office of the State Information Council, the Central Bank of China, and the Chinese Banking and Insurance Regulatory Commission.
These discussions come amid an overhaul of Ant’s management and a broader ban on China’s tech sector. All this was triggered by Jack Ma’s criticism of China’s regulators in a speech in October last year.
If Jack Ma leaves, it will pave the way for Ant to revive his plans to go public. The plan stalled after Jack Ma’s controversial speech, according to two sources close to the company. Ant, which will raise $ 37 billion in the world’s largest initial public offering, scrapped the plan a day after Jack Ma’s meeting with regulators on November 2, 2020.
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