Ant Group may finally be able to put behind the fintech overhaul saga as it has agreed with Chinese regulators to restructure itself into a financial holding company.
Ant Group will place all of its businesses into the holding company, according to a «Bloomberg» report citing unnamed sources, including its tech offering such as blockchain and food delivery.
This will also make it subject to capital requirements similar to those for banks in mainland China.
Best and Worst Case Avoided
According to the sources, Ant’s had hoped through its early proposals to be able to place only its financial operations in the new structure.
While this was unsuccessful, onlookers believe that the completed restructuring will allow Ant to avoid the worst-case scenario of having to break up the overall business.
An official announcement on Ant’s restructuring could be made before the start of the Chinese Lunar New Year holiday next week, the sources added.
IPO Timeline
Last month, the governor of the People’s Bank of China Yi Gang suggested a listing revival was possible for Ant, saying that «you just follow the standard of legal structure [and] you will have the result».
Ant is believed to be exploring possibilities for another IPO attempt but it is unclear how long it will take for authorities to give its approval under the new financial holding company framework.
