Alibaba opts out of Ant Group stock buyback

Alibaba will not participate successful a planned stock buyback of its fintech arm, Ant Group, according to a regulatory filing lodged pinch nan Hong Kong Stock Exchange connected Sunday.

"Given that Ant Group continues to beryllium an important strategical partner to Alibaba Group’s various businesses, Alibaba Group has decided that it will not waste immoderate shares to Ant Group nether nan projected stock repurchase, truthful arsenic to support its shareholding successful Ant Group," read [PDF] nan filing.

The Chinese web elephantine holds a 33 percent liking successful its 12-year-old spin-off.

The fintech cognition announced successful early July it would participate successful a buyback that allows each investor to waste 7.6 percent of its stock. Big investors, including Singapore's sovereign wealthiness fund, Temasek, which has a portfolio complete one-fifth Chinese-based, person been reported to beryllium exploring nan action arsenic concerns linger complete Beijing's net crackdowns and nan wide business environment.

The buyback announcement came weeks aft 1 specified crackdown – this clip affecting web giants Ant Group and Tencent. Alibaba received a $984 cardinal good connected behalf of Ant Group and an bid to unopen down its wellness security service, Xianghubao. The e-health supplier was said to person surgery aggregate laws concerning insurance, investments, money laundering and more.

• China ends crackdown connected web giants pinch colossal fines for Ant Group, Tencent
• Beijing charismatic says crackdown connected tech companies is over
• Alibaba leader steps down to go leader of Alibaba Cloud
• Jack Ma is back, and he has immoderate feelpinions to share

The buyback itself was expected to thief investors recoup rate pursuing nan issued fines, but – unluckily for shareholders wanting retired – nan banal was weighted astatine 70 percent of its level successful 2020 erstwhile Ant Group almost floated.

That IPO was group to beryllium nan world's highest-valued IPO ever. That is, earlier it was kiboshed by Beijing. The cancellation was seen by galore arsenic retaliation for comments made by laminitis Jack Ma criticizing nan government.

But nan good from Beijing was besides viewed by galore arsenic a finale to nan regulatory kerfuffle. Chinese authorities said past January they had "basically completed" their 14-platform business rectification campaign.

Jack Ma moreover reappeared past March aft a funny absence that lasted much than 1 year.

Now that each look to beryllium successful bully graces pinch Beijing, location whitethorn beryllium thing near to do than estimate connected whether Ant Group will reattempt an IPO.

Of course, awesome changes person occurred since 2020 – including Alibaba's determination to split into six companies, and a reshuffling of its executive activity including its CEO. So nan group is successful a very different situation than it knowledgeable 3 years ago. ®