Benzinga - Shares of Alibaba (NYSE:BABA) Group Holding Ltd (NYSE: BABA) rose over 7% in morning trade in Hong Kong in the wake of the news regarding billionaire Jack Ma ceding control of Ant Group.
Ma’s 10% stake in Ant will drop to 6.2% under the proposed plan, according to a report by Reuters. His related entities also have equity interests in Ant, which together give him a controlling stake in the fintech company, which will change as part of the overhaul, the report said.
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Not only Alibaba, but share prices of other Ant-related entities also rose on Monday. Shares of Longshine Technology Group Co Ltd, Jilin Zhengyuan, Shanghai Golden Bridge Infotech Co, Orbbec Inc and Hundsun Technologies also rose in morning trade.
Expert Take: Alexander Sirakov, managing partner at Aquariusx, a Shanghai-based investment consultancy said investors can stop guessing and can finally assign a risk premium to the new company that Ant was transformed to be, according to the Reuters report.
Earlier this week, Ant reportedly received regulatory approval to raise about $1.5 billion in cash for its consumer lending arm.
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