Chinese regulators have said e-commerce giant Alibaba’s (BABA) finance affiliate Ant Group can raise $1.5B for its consumer finance unit in an important step forward after the government called off a planned IPO two years ago and ordered the firm to restructure.
The China Banking and Insurance Regulatory Commission said in a notice dated December 30 that Ant’s consumer credit unit had gained approval to increase its capital to ¥18.5B ($2.7B) from ¥8B ($1.16B).
The approval comes more than a year after an earlier plan to raise ¥22B ($3.2B) fell through when China Cinda Asset Management, a state-owned bad loans manager, pulled out of an agreement to acquire a 20% stake in Ant’s consumer finance arm.
Ant is restructuring after Chinese regulators pulled the plug on its mega-IPO just days before its market debut in Hong Kong and Shanghai.
The company is awaiting approval of licenses to operate as a financial holding company and as a personal credit ratings firm.
Chinese regulators approve capital expansion for Ant Group … – Seeking Alpha
