After the adjustment, according to the report and CNN calculations, Ma’s voter turnout would drop to 6.2%.
Before the restructuring, Ma held more than 50% of the voting rights in Ant via Hangzhou Yunbo and two companies, according to its IPO prospectus filed on exchanges in 2020.
The adjustment of voting rights, a move to make the company’s shareholder structure “more transparent and diverse”, will not result in any change in the economic interests of any shareholders, Ande added in the statement.
Ant said its 10 major shareholders, including Ma, have agreed to no longer act together and vote independently when exercising their voting rights, so that no shareholder will have “sole or joint control over Ant Group”.
Voting rights were modified after Chinese regulators pulled Ant’s $37 billion IPO in November 2020 and ordered the company to restructure its business.
As part of the company’s restructuring, Ant’s consumer finance division applied to expand its registered capital from $1.2 billion to $2.7 billion. The China Banking and Insurance Regulatory Commission recently approved the application, according to a government announcement released late last week.
After the fundraising drive, Ant will control half of its core consumer finance division, while a company controlled by the Hangzhou city government will hold a 10% stake. Alibaba and Ant have been headquartered in Hangzhou since their inception.
Ant Group is Alibaba’s fintech subsidiary, both founded by Ma.