Jack Ma-Backed Ant Group To Buy Back Shares At 70% Lower Valuation Than At IPO
Portfolio Pulse from Bibhu Pattnaik
Ant Group, backed by billionaire Jack Ma, plans to buy back up to 7.6% of its shares at a valuation of $78.5 billion, a 70% decline from its IPO valuation. The repurchased shares will be used for Ant's staff incentive program. The buyback offers an exit to investors impacted by the company's regulatory issues. Prominent U.S. investors include Silver Lake Management, Warburg Pincus, and Carlyle Group. Chinese regulators have fined Ant and Tencent Holdings over $1 billion amid a crackdown on tech giants.
July 08, 2023 | 3:05 pm
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NEGATIVE IMPACT
Carlyle Group, a major investor in Ant Group, may see a short-term impact due to Ant's decision to buy back shares at a significantly lower valuation.
As a significant investor in Ant Group, Carlyle Group's investment value may decrease due to the lower valuation of Ant's shares. This could potentially affect Carlyle Group's short-term financial performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 75
NEGATIVE IMPACT
Tencent Holdings, along with Ant Group, has been fined over $1 billion by Chinese regulators amid a crackdown on tech giants.
The hefty fine imposed on Tencent Holdings by Chinese regulators could negatively impact the company's short-term financial performance. This regulatory action also signals a challenging environment for tech companies in China.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 65