Shulou(Shulou.com)11/24 Report--

CTOnews.com news on July 9, Alibaba announced on the Hong Kong Stock Exchange on July 9 that Ant Group had been informed that Ant Group would hold a shareholders' meeting to approve (among other things) Ant Group's proposal to buy back no more than 7.6% shares from all its shareholders. The proposed share repurchase price represents a valuation of about 567.1 billion yuan for Ant Group. It is understood that the shares repurchased this time will be transferred to the employee incentive program of Ant Group. Alibaba Group is considering whether to participate in the proposed share buyback.

On the morning of July 8, Ant Group disclosed that in order to supplement the employee incentive pool to continue to attract talent, and to further meet the liquidity needs of shareholders, it will buy back some of the shares of existing shareholders with its own funds, and the repurchase ratio will not exceed 7.6% of the total share capital. The relevant matters have been approved by the Ant Group's board of directors and submitted to the general meeting of shareholders for consideration. Ant Group said that this buyback follows the principle of marketization. In order to determine the repurchase price reasonably, Ant Group referred to the market practice, hired well-known investment banks at home and abroad as financial advisers, and priced according to its valuation report.

According to the buyback plan, Ant Group's repurchase price corresponds to a company valuation of about 567.1 billion yuan, down about 40 per cent from the valuation of round C financing (about 960 billion yuan) in 2018. In the current situation of low valuation of domestic Internet companies, this change is in line with market expectations.

CTOnews.com previously reported that Ant Group and its subsidiaries were fined 7.123 billion yuan by financial regulators on July 7.

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