Ant Group plans restructuring, paving way for Hong Kong IPO

Alibaba said it would not participate in the buyback but would maintain its shareholding

(Reuters) - Jack Ma-backed Ant Group (688688.SS) is planning a restructuring that will break off some non-core operations of its China financial-related business, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The Alibaba Group (9988.HK) affiliate is looking at excluding its blockchain, database management services and international businesses from a main entity that will be used to apply for a financial holding license in China, the report said.

Once the restructuring is complete and Ant secures the license, it can prepare for a public listing in Hong Kong instead of reviving the dual Shanghai-Hong Kong listing plan that was suspended by Chinese authorities in 2020, Bloomberg said.

Ant Group declined to comment on the report, while Alibaba did not immediately respond to a Reuters request for comment.

Earlier this month, Ant Group announced a surprise share buyback that valued the fintech giant at $78.54 billion, well below the $315 billion touted in the suspended IPO.

Alibaba said it would not participate in the buyback but would maintain its shareholding in Ant.

However, some Chinese state-owned firms that took part in Ant's earlier funding rounds are planning to participate in the buyback and shareholders have until early August to make a decision, Bloomberg reported.