Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Alibaba/AFP

World

Alibaba founder Jack Ma buys into Chinese software firm

Alibaba/AFP

Alibaba/AFP

SHANGHAI, April 4- Jack Ma, the billionaire founder of Chinese e-commerce giant Alibaba, is to pay $531 million for a stake in a domestic software developer for the financial industry, a statement said.

Zhejiang Finance Credit Network Technology, which is owned by Ma, will take a 20.62 percent stake in Shanghai listed Hundsun Technologies, Hundsun said in a statement.

Ma stepped down as chief executive officer of Alibaba last year, but remained as chairman to provide strategic direction.

Alibaba, the world’s largest online retailer, is expected to list on Wall Street later this year.

The deal would effectively make Ma the controlling shareholder of Hundsun, the statement said, adding China’s commerce ministry must still grant regulatory approval.

Hundsun provides software solutions to a range of financial institutions including banks and stock brokerages. Trading of its shares on the Shanghai market has been suspended since mid-March and will resume Tuesday.

There has been speculation Ma is planning a backdoor listing of Alibaba’s microfinance services group, which is expected to be left out of the vehicle for the US initial public offering.

But Hundsun dismissed the possibility of further asset injections into the company.

“Zhejiang Finance Credit and its actual controller Ma Yun (Jack Ma) are not aiming for a backdoor listing or asset injection through this deal, nor do they have any plans to inject assets or business into the company in the next 12 months,” it said.

Zhejiang Finance Credit mainly provides back-office support for risk management, according to the statement.

Advertisement. Scroll to continue reading.

Forbes magazine ranked Ma as China’s eighth richest person last year with wealth of $7.1 billion.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...