News this week: China’s largest e-commerce company, Alibaba
Group, has announced the latest restructuring of its payments division, Alipay. Alipay is currently a subsidiary of Zhejiang
Alibaba E-Commerce Co. Ltd., a company 80%-owned by Alibaba’s founder and
chairman, Jack Ma.
As part of the restructuring, Zhejiang Alibaba will be
absorbed and become the Alibaba Small and Micro Financial Services Group. Alibaba
will offer 60% of the shares in Alipay’s new parent company to strategic
investors, with the remaining 40% to be owned by around 24,000 Alibaba employees.
According to Alibaba, founder Jack Ma will retain a 7% stake in the new entity.
Alibaba’s spokesman John Spelich said, “Today’s announcement
underscores that employees of both Alibaba Group Holdings and Alibaba Small and
Micro Financial Services Group are being incentivised to work hard to achieve
success for the company.”
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