Three Ant Group Subsidiaries to Gain Independence in Major Restructure Following Blocked IPO
Ant Group's decision to grant operational independence to three of its subsidiaries marks a significant restructuring following the cancellation of its IPO. This move is expected to provide more flexibility and growth opportunities for these subsidiaries within the fintech ecosystem.
Ant Group, the owner of Alipay, has announced a significant restructuring plan, marking its biggest overhaul since the cancellation of its initial public offering (IPO) in late 2020. As part of the restructuring, three of Ant Group's subsidiaries will be granted operational independence. In addition, the company has appointed Han Xinyi, the current chief financial officer, as its new president.
The restructuring is expected to provide more flexibility for businesses within the fintech affiliate universe of Alibaba and unleash their growth potential under Ant's globalization strategy. Ant Group Chairman and CEO, Eric Jing, stated that this reshuffle is just the beginning of many changes aimed at fostering emerging businesses and creating greater value for society.
The three subsidiaries that will become independently operated are Ant International, commercial database OceanBase, and Ant Digital Technology. These "innovative businesses" will establish their own board of directors and reduce their reliance on the group. While they are still incurring losses, Ant Group will continue to provide technology and capital support to these units. However, they are also planning to launch separate stock option plans to retain talent.
The restructuring comes in the wake of the unexpected halt of Ant Group's IPO in November 2020. Just two days before its scheduled dual listing debut in Hong Kong and Shanghai, the IPO was abruptly halted by China's financial regulator. The Shanghai Stock Exchange announced that the actual controller, chairman, and CEO of Ant Group were called in for regulatory talks, which could potentially impact the firm's ability to meet issuance and listing conditions.
This move by the Chinese authorities followed a hefty fine of RMB 71.23 billion imposed on Ant Group and its subsidiaries last July. The fine was seen as a signal that the close scrutiny of the fintech giant by regulatory bodies had come to an end.
Ant Group's decision to grant operational independence to three of its subsidiaries marks a significant restructuring following the cancellation of its IPO.
This move is expected to provide more flexibility and growth opportunities for these subsidiaries within the fintech ecosystem.
Source: TECHNODE