HANGZHOU, China — Alibaba Group Holding Limited (NYSE: BABA, “Alibaba Group”) and Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Financial”) announced that Alibaba Group has received a newly-issued 33% equity interest in Ant Financial following the satisfaction of the closing conditions set forth in the 2014 transaction agreements and the relevant amendments to those agreements.
Upon closing of the issuance, the profit-sharing arrangement under which Ant Financial previously paid fees amounting to 37.5% of its pre-tax profits to Alibaba Group was terminated.
Alipay, which rebranded itself as Ant Financial in 2014 is controlled by billionaire Jack Ma, and has grown into a $150 billion behemoth — that offers micro-lending, insurance, credit-scoring and the country’s largest money-market fund. The company is now acquiring assets overseas via deals in India and Thailand, en route to a potential initial public offering.
Officially named Zhejiang Ant Small & Micro Financial Services Group Co, the company is one of Mr Ma’s most closely watched assets, and tightly linked to Alibaba.