Alibaba considering whether to participate in Ant's share buyback

Tech heavyweight Alibaba Group Holding Ltd said on Sunday it is considering whether or not to participate in its affiliated company Ant Group's share repurchase plan that values the fintech company at 567.1 billion yuan ($78.5 billion).

Alibaba said in a filing to the Hong Kong stock exchange that it received a notice from Ant Group proposing to all of its shareholders to repurchase up to 7.6 percent of its equity interest at a price that represents a group valuation of approximately 567.1 billion yuan.

The repurchased shares will be transferred into Ant's employee incentive plans, Alibaba said.

Ant said in a statement on Saturday that its major shareholders Hangzhou Junhan Equity Investment Partnership and Hangzhou Junao Equity Investment Partnership have voluntarily decided not to participate in the repurchase.

The stock buyback plan come after Chinese financial regulators imposed a 7.12 billion yuan fine on Ant Group on Friday for violations of laws on corporate governance, consumer rights and business activities, a move which analysts said ends a years-long regulatory overhaul of the fintech company.

fanfeifei@chinadaily.com.cn