Friday, November 08, 2013

Restructured Alipay to receive financing

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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