Ant Group is exploring ways for founder Jack Ma to divest his stake in the financial technology giant and give up control over it, as meetings with Chinese regulators signaled to the company that the move could help draw a line under China's scrutiny of its business, according to a source familiar with regulators' thinking and two people with closer ties to the company.
For the first time it has been reported details of recent cycles and discussions on the future of the Ant control, which is being implemented through a complex framework for investment vehicles. The Wall Street Journal previously reported that Ma offered a November meeting with regulators to hand over ants to the Chinese government.
Officials at the central bank, People's Bank of China (PBOC), and China Banking and Insurance Regulatory Commission (CBIRC) held talks between January and March and Ma and Ant separately, discussing the company's chances of leaving the company. , according to accounts provided by a source who is accustomed to the opinion of directors and one of the sources having a close relationship with the company.
The ant denied that the lowering of Ma's pole was still under consideration. "The separation of Mr Ma's post from the Ant Group has never been negotiated with anyone," an Ant spokesman said in a statement.
Reuters could not decide whether Ant and Ma would continue with the split option, and if so, which one. The company had hoped that Ma's stake, worth billions of dollars, could be sold to existing investors in Ant or its affiliated commerce company Alibaba Group Holding Ltd without the involvement of any outside organization, said one of the company's responsible sources.
But a second source close to the company said that during an interview with regulators, Ma was told she would not be allowed to sell her stake to any organization or person close to her, and she would have to leave completely. Another option would be to transfer his stake to a Chinese investor affiliated with the state, the source said.
Any action that would need to be approved by Beijing, said both sources with knowledge of the company's thinking.
The accounts provided by all three sources are flexible depending on the timeline of how the negotiations have unfolded over the past few months. On the company side, one source said Ma met with regulators more than once before China's new year, which was in early February. A second source said the ant started working with Ma's exit options a few months ago. A source familiar to the regulators' thinking said Ant had told officials during a meeting sometime before mid-March that he was working on options.
A source that usually thinks of regulators has accurate information on the negotiations between Ant and officials, and one of the company's affiliated sources has been informed of Ma's contact with management and Ant's plans. This one has specific information about Ant's conversations about options. They asked for anonymity because of the sensitivity of the situation.
Ant's spokesman did not provide anything from Ma.
Alibaba passed on the questions to Ant. Jack Ma's office did not respond to Reuters's request for comment on Ant. The Office of the Council of State, PBOC, and CBIRC, also did not respond to requests for comment.
The much-anticipated talks stem from the Ant's renewal and widespread laws on China's technology sector, which came into effect after Ma publicly criticized regulators in a speech in October last year.
Ma's release could help pave the way for the ant to revive its publicity programs, which were set up after a rich man's speech, both of which are close to the company. The ant, which would have raised about $ 37 billion in what would be the world's largest public donation, withdrew plans the next day after a November 2 meeting with regulators.
'VERY IMPORTANT TO THEIR ARMIES'
Since then Beijing has introduced a series of investigations and new laws that not only resonate with the Ma government but also attack the country's technology sector, including some high-profile businessmen, billionaires.
For Ma, 56, who also founded Alibaba and once ordered a cult-like honor in China, the results have been devastating. The tycoon has completely withdrawn from the public eye for about three months and has continued to retain dignity after a brief January appearance.
China's antitrust regulator fined Alibaba a $ 2.75 billion record on April 10 following an antimonopoly investigation that found it to abuse its market position for several years. A few days later the ant was asked by the central bank to become a financial management company, bringing it under the banking rules that it had managed to avoid so far and allowed it to grow rapidly.
"China still wants to promote technology firms as world leaders as long as it does not grow bigger than its witches," said Andrew Collier, managing director of Orient Capital Research.
CONTROLING TABLE
Although Ma previously left positions in companies, he continues to successfully manage Ant and a major influence on Alibaba.
While she owns only 10% stake in Ant, Ma controls the company through affiliated organizations, according to Ant's IPO hope.
Hangzhou Yunbo, Ma's investment vehicle, has the power to control the other two ant-owned joint ownership of 50.5%, the prospectus said. Yunbo can resolve all ant-related issues and exercise the combined voting power of three parties, the prospectus shows.
Ma holds 34% equity interest in Ununbo, the prospectus shows.
One of the company's responsible sources said there was "a good chance" that Ma could sell her interest in Unit to get out of Ant, eventually paving the way for the fintech manager to come close to finalizing its renewal and renewing its list.
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