Alibaba Group Holding Ltd. is considering selling shares to Ant Group Co. as part of the fintech company’s planned buyback after financial regulators wrapped a nearly three-year probe into the financial technology company.
(Bloomberg) — Alibaba Group Holding Ltd. is considering selling shares to Ant Group Co. as part of the fintech company’s planned buyback after financial regulators wrapped a nearly three-year probe into the financial technology company.
Alibaba, which owns about a third of Ant, said in a stock exchange filing in Hong Kong that it received notice of the Ant share buyback program at a valuation of 567.1 billion yuan ($78.5 billion).
On Saturday, Ant proposed to buy back as much as 7.6% of shares in an effort to provide a chance to cut stakes for investors ensnared by a years-long regulatory crackdown at the fintech powerhouse.
Read more: Ant to Buy Back Shares at 70% Lower Valuation Than at IPO (3
The planned share repurchase would value the company at almost 70% less than its $280 billion market capitalization in 2020.
Read more: Jack Ma’s Clash With Beijing Costs Ant, Alibaba $850 Billion
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