Ant Group plans to spin off its consumer-credit data operations, Reuters sources with knowledge of the matter said, a concession to aggressive regulators that should help the Chinese fintech giant get its massive public share sale back on track, reported Reuters.
Hiving off the treasure trove of data on more than 1 billion people is a key part of Ant’s business overhaul in response to a regulatory crackdown that resulted in the abrupt suspension of its $37 billion initial public offering (IPO), which would have been the world’s biggest, the sources told Reuters.
The data spinoff, along with Ant’s conversion to a more strictly regulated financial holding company, will mean the affiliate of e-commerce behemoth Alibaba Group could proceed with the IPO within two years, two other sources said.
“Ant’s financial holding firm will be granted the license from the PBOC and will be allowed to go public after the overhaul,” one of the sources said, referring to the People’s Bank of China, the central bank.
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