Jack Ma Loses Control of His Fintech Company, Ant Group As He Continues to Run Away From Chinese Government
- Chinese billionaire Jack Ma has finally lost his control of fintech giant, Ant Group
- The decision was made after shareholders agreed to change the company's ownership structure.
- Jack Ma has been running away fro, the Chinese authorities and he is currently residing outside of the country
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Chinese billionaire Jack Ma will lose control of Ant Group, a fintech affiliate of Alibaba, both of which he founded.
According to a statement on Saturday, January 7, 2023, the new company's structure means Ma’s voting rights will fall to 6.2%, CNN reports.
Before the restructuring, Ma held 50.52% of voting rights at Ant via Hangzhou Yunbo and two other entities, according to its IPO prospectus filed with stock exchanges in 2020.
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What is happening to Jack Ma
Jack ma is one of the billionaires the Chinese authorities have continued to crack down on.
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For months now, Ma has been leaving outside of his home country and was recently spotted in Thailand.
Before the restructuring, Ma held 50.52% of voting rights at Ant via Hangzhou Yunbo and two other entities, according to its IPO prospectus filed with stock exchanges in 2020.
Analysts believe the action to remove Jack Ma from controlling power is at the behest of the Chinese authorities.
However Ant Group in the statement said:
“The adjustment is being implemented to further enhance the stability of our corporate structure and sustainability of our long-term development.
“The main result of the Adjustment will be to change the exercise of voting rights of Ant Group’s major shareholders, from Mr Jack Ma exercising voting rights jointly with persons acting in concert, to each of ten individuals (including the founder, representative of our management and employees) exercising their voting rights independently.”
Jack Ma on the run
Jack Ma troubles ran into trouble with the Chinese government over violating anti-monopoly regulations and has kept a low profile since 2020.
In the last few months, he has been reported to have lived in Tokyo for about six months and is now in Thailand.
Jack Ma wealth
Once China’s richest man, Ma’s net worth has fallen by more than $25 billion since he disappeared from public view,.
According to Bloomberg Billionaires Index, he is currently the 34th richest man in the world with a net worth of $34.1 billion.
It is expected that the latest crackdown could affect his net worth in the coming weeks.
Source: Legit.ng
