Jack Ma’s Ant Group has reached a deal with Chinese regulators to restructure its business after they raised issues that halted its $37bn initial public offering last year, according to several people familiar with the situation.
The proposed restructuring will involve Ant placing all of its major businesses, including its technology units, inside a financial holding company to comply with a new regime implemented by the People’s Bank of China in November.
The change, which is likely to be announced before the Chinese new year holiday begins on February 11, according to two of the people familiar with the process, will leave China’s largest mobile payments company subject to stricter capital requirements, making it more like a bank than a tech company.