Related News

Home » Business » IT

Alibaba reaches deal with Junzheng over dispute on retained profit

ALIBABA Group's small finance affiliate has reached a deal with a shareholder of Tianhong Asset Management Co over retained profit, paving the way for the Internet company to wrap up purchasing a majority stake in the fund manager.

Tianhong is the fund company that manages the popular cash management product Yu'e Bao through Alipay and Zhejiang Ant Small & Micro Financial Services Group became its controlling shareholder for 1.18 billion yuan (US$192.8 million) in 2013.

Inner Mongolia Junzheng said in a stock exchange filing that it agreed that the retaining profit of Tianhong Fund would be distributed only among the old shareholders before Junzheng made a further capital contribution in January 2014.

"All related parties consider that reconciliation is in the best interest of Tianhong's shareholders and legally binding documents," it said in the statement.

Junzheng had demanded that it should be entitled to share the profit before its capital contribution and Ant Small & Micro Finance disapproves.

Inner Mongolia Junzheng has completed the payment of 69.43 million yuan of capital contribution and Ant Small & Micro Finance has retracted its application for an arbitration from China International Economic and Trade Arbitration Commission, according to the stock exchange filing.

Ant Small & Micro Finance said in an email statement that it will "continue to provide the best service for Yu'E Bao users" without elaborating on the details.

In a framework agreement in 2013, Ant Small & Micro Finance agreed to purchase 51 percent of Tianhong for 1.18 billion yuan (US$192.8 million).

In January 2014, Junzheng signed capital contribution agreement along with other shareholders of Tianhong including Tianjin Trust Co and Ant Small & Micro Finance.

That gave Ant finance a 51 percent controlling stake and Junzheng would contribute another 69.43 million yuan, giving it 15.6 percent of the enlarged share capital, lower from 36 percent before the share subscription.

Tianhong is managing 579 billion yuan from money-market fund Yu’E Bao by the end of December last year, according to its website.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend