(Reuters) Chinese government-backed firms are eyeing major stakes in Ant Group joint venture with Zhejiang Tourism Investment Group that could come as soon as October.
Ant’s IPO with Zhejiang aims to create a credit-scoring system, with the firm and its ownership structure reflecting the restructuring orders by Chinese regulators.
The JV is expected to bring Ant’s business data-operations together, thus improving regulatory oversight.
Ant and Zhejiang will each own 35% of the JV, with state-backed partners that include Zhejiang Electronic Port and Hangzhou Finance taking a significant share.
Ant’s JV comes at a time when the tech giant tries to revamp its business after its initial public offering was suspended by Beijing in November, two days to debut.
Shareholders are expected to invest about 500 million yuan or $77.4 million in the JV under a framework that is being discussed.
Ant is expected to use the JV’s stake backing to revive the botched IPO.
9988: HKG is down -0.18%.
