Ant Group’s consumer finance unit to boost its capital to $4.7b

Ant Group's Hangzhou Headquarters. Source: Ant Group

The consumer finance unit of China’s Ant Group will boost the company’s capital to 30 billion yuan ($4.71 billion) from 8 billion yuan, and introduce 4 new strategic investors, an exchange filing released on Friday said.

The unit, Chongqing Ant Consumer Finance Co Ltd, 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 6 billion yuan as part of the exercise.

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

Ant will retain a 50% 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 Inc, and Yufu Capital, a local investment arm of the Chongqing government.

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.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.