Source: Alibaba
Alibaba Group Holding Limited (BABA) and Zhejiang Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Financial”) today announced the closing of the restructuring of the relationships between the two companies (the “Restructuring”). Ant Financial (formerly known as Small and Micro Financial Services Company) is the parent company of Alipay.
As disclosed in detail in Alibaba Group’s prospectus for its initial public offering in September 2014 (the “IPO”), in connection with the Restructuring, Alibaba Group and Ant Financial entered into a share and asset purchase agreement (the “SAPA”), and entered into or amended certain ancillary agreements in August 2014, which together govern the relationships between the two companies. Pursuant to the SAPA, among other things, Alibaba Group agreed to sell to Ant Financial certain entities and loan and other assets primarily relating to its small and medium enterprise (“SME”) loan business and other related services. Except for the sale of the SME loan business, the restructuring contemplated by the SAPA and the ancillary agreements took effect upon execution of those agreements.
Upon the satisfaction of the closing conditions, including receipt of regulatory approvals, the sale of the SME loan business by Alibaba Group to Ant Financial pursuant to the SAPA has now been completed. Following the completion of this sale, Alibaba Group will no longer consolidate the financial results of the SME loan business. The completion of this sale also marks the closing of the Restructuring between Alibaba Group and Ant Financial.