Alibaba makes a major announcement! Consider repurchasing Ant Group | Ant | shares
On July 9th, Alibaba announced on the Hong Kong Stock Exchange that the Alibaba Group had received a notice from its non consolidated related party Ant Technology Group Co., Ltd., which holds 33% of its equity. Ant Group will hold a shareholder meeting to approve Ant Group's proposal to repurchase no more than 7.6% of its shares from all its shareholders. The proposed share repurchase price represents a valuation amount of approximately RMB 567.1 billion for Ant Group. It is understood that the shares repurchased this time will be transferred to Ant Group's employee incentive plan. Alibaba Group is considering whether to participate in the proposed share buyback.
Previously, Ant Group disclosed that in order to supplement its employee incentive pool to continuously attract talent and further meet the liquidity needs of shareholders, it will repurchase some of its existing shareholders' shares with its own funds, with a repurchase ratio not exceeding 7.6% of the total share capital. The relevant matters have been approved by the board of directors of Ant Group and submitted to the shareholders' meeting for review.
According to the repurchase plan, the price of Ant Group's repurchase this time corresponds to a company valuation of approximately RMB 567.1 billion, a decrease of about 40% compared to the 2018 C-round financing valuation.
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Ant Group stated that repurchasing shares to supplement the employee incentive pool will help better attract outstanding talents and enhance the company's ability to use technology to serve finance and the real economy.