Mar 11, 2019 (China Knowledge) - Alibaba Group Holdings and affiliate Ant Financial will be establishing a new steering committee to be led by the e-commerce giant to lead joint business initiatives and ensure that the two companies’ long-term interests remain aligned.
The new committee will be headed by Alibaba’s CEO Daniel Zhang with Ant Financial’s chairman Eric Jing as second-in-command. Committee members will be responsible to ensure that both companies’ work together.
The formation of the new committee comes as Alibaba looks to take a one-third equity stake in Ant Financial which will provide the e-commerce giant an avenue to keep Ant Financial aligned with its e-commerce business even if the latter goes public.
Alibaba has not held a stake in Ant Financial since founder Jack Ma spun out the business but has indicated that it will purchase a 33% stake in its affiliate in February last year, clearing the way for a potential IPO to create a new entity that would be worth more than USD 600 billion.
The acquisition of a stake in Ant Financial would come in exchange for the latter intellectual property rights with no cash involved. Following the deal, Ant Financial would then end royalty payments to Alibaba.
Copyright © 2018 www.chinaknowledge.com
Send feedback or comments to: email@example.com
For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: www.chinaknowledge.com
To access our page on Bloomberg, type CKFI