Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Jack Ma’s Ant Financial plans to buy 20% stake in Ascend Money
BackBack

Jack Ma’s Ant Financial plans to buy 20% stake in Ascend Money

Jack Ma's Ant Financial also wants an option to increase its Ascend Money holding to 30%, says China's ministry of commerce website

Ant Financial, which is said to be valued at about $60 billion, is following Jack Ma’s aspirations for global expansion as it ventures into countries including South Korea and India. Photo: BloombergPremium
Ant Financial, which is said to be valued at about $60 billion, is following Jack Ma’s aspirations for global expansion as it ventures into countries including South Korea and India. Photo: Bloomberg

Hong Kong: Alibaba Group Holding Ltd.’s financial affiliate is planning to purchase a 20% stake in Thailand’s Ascend Money in a bid to become a key financial services player in Southeast Asia.

Zhejiang Ant Small & Micro Financial Services Group, known as Ant Financial and controlled by Alibaba co-founder Jack Ma, also wants an option to increase its Ascend Money holding to 30%, according to a statement on China’s ministry of commerce website. The agency is currently reviewing the plans.

An investment into Ascend Money, parent of True Money and Ascend Nano, would help Ant Financial expand its online payments and small loans business in Southeast Asia. The company, which is said to be valued at about $60 billion, is following billionaire Ma’s aspirations for global expansion as it ventures into countries including South Korea and India.

Ascend Group Co. Ltd. was spun off from True Corporation and is a subsidiary of Thailand’s Charoen Pokphand Group Co Ltd., which has interests in agriculture, retail businesses and telecommunications.

Personal loans

The Ascend Nano unit is a microfinance and personal loans provider with staff throughout Southeast Asia. The division’s goal is to spread e-commerce and electronic payments services to places where many users lack bank accounts such as Myanmar and Indonesia.

True Money provides cash cards and electronic wallets, and holds financial-services licenses in key Southeast Asian markets.

Ascend group chief executive officer Punnamas Vichitkulwongsa in April told the Bangkok Post the company will spend 6 billion baht ($170 million) on expansion this year, 83% of which will be spent outside of Thailand.

“The pending investment reflects our commitment to expand internationally, and to bring equal access of financial services to more users around the world," Ant Financial said in an-e-mailed statement. “The investment is conditional on approval from the Anti-Monopoly Division of the Chinese ministry of commerce."

Ant Financial received a payment Indian bank license via Paytm, the country’s largest payments provider with about 122 million users, as of January, Sabrina Peng, vice president of international business for the company, said in May. In South Korea, it won preliminary approval of an Internet bank license through SK Telecom Co.

Ant Financial is considering an initial public offering on the Shanghai stock exchange as early as this year, people familiar with the matter have said. Bloomberg

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 18 Jun 2016, 11:15 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App