Chinese billionaire Jack Ma will no longer control Ant Group after the fintech giant’s shareholders agree to restructure its shareholder structure, according to a statement the company issued on Saturday.
After adjustment, Ma’s voting power would drop to 6.2%, according to the statement and CNN’s calculations.
Prior to the restructuring, Ma held 50.52% of Ant’s voting rights through Hangzhou Yumbo and two other entities, according to an IPO prospectus filed with the stock exchange in 2020.
In a statement, Ant added that the adjustment of voting rights, a move to make the company’s shareholder structure “more transparent and diversified,” would not make any difference to the economic interests of any shareholder.
Ant said its 10 major shareholders, including Ma, have agreed to no longer act in concert when exercising their voting rights and to vote only independently.
The voting rights review came after Chinese regulators canceled Ant’s $37 billion IPO in November 2020 and ordered the company to restructure its business.
As part of the company’s restructuring, Ant has applied to increase its registered capital from $1.2 billion to $2.7 billion. China’s Banking and Insurance Regulatory Commission recently approved the application, according to a government notice issued late last week.
After the financing, Ant will control half of the major consumer finance sector, with a 10% stake owned by an entity controlled by the Hangzhou Municipal Government. Hangzhou is where Alibaba and Ant have been headquartered since their inception.
Ant Group is a fintech affiliate of Alibaba, both founded by Ma.