Ant Group’s Consumer Finance Unit to Boost Its Capital to $4.7 Billion, Introduce New Investors

Ant will retain a 50 percent stake in the unit.

By Reuters | Updated: 25 December 2021 12:12 IST

China Cinda Asset Management said it will invest CNY 6 billion (roughly Rs. 7,075 crore)

Highlights

After the deal, China Cinda will become the second biggest shareholder
The filing also disclosed the introduction of other strategic investors
Ant seeking to differentiate its short-term consumer loan business

The consumer finance unit of China's Ant Group will boost the company's capital to CNY 30 billion (roughly Rs. 35,377 crores) from CNY 8 billion (roughly Rs. 9,434 crore), and introduce 4 new strategic investors, an exchange filing released on Friday said.

The unit, Chongqing Ant Consumer Finance, is under regulatory pressure to fold Ant's two lucrative micro-loan businesses Jiebei and Huabei into it, which would make it subject to rules and capital requirements similar to those for banks.

China Cinda Asset Management, one of company's new investors and one of the country's four biggest state asset managers, said it will invest CNY 6 billion (roughly Rs. 7,075 crore) as part of the exercise.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

After the deal, China Cinda will become the second biggest shareholder with a 24 percent stake in the consumer financing unit, including a 20 percent stake it holds directly and a 4 percent stake held by Nanyang Commercial Bank, a Cinda subsidiary.

Ant will retain a 50 percent stake in the unit, Cinda's filing to Hong Kong Stock Exchange showed.

The filing also disclosed the introduction of three other strategic investors into Ant's consumer financing unit, including Sunny Optics, Boguan Technology, a unit of NetEase, and Yufu Capital, a local investment arm of the Chongqing government.

Alibaba Overhauls E-Commerce Businesses, Appoints New CFO

Last month, Ant said it was seeking to differentiate part of its short-term consumer loan business Jiebei, as it pursues a regulator-led restructuring.

China Fines Tech Giants for Failing to Report 43 Old Deals

How does the Oppo Find N improve over Galaxy Z Fold 3? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.