FILE PHOTO – Jack Ma, founder and CEO of the Chinese Alibaba Group, speaks during a press conference in Chiba, Japan, on June 1
SHANGHAI (Reuters) – Jack Ma, co-founder of Alibaba Group Holding Ltd, cut his stake in the company from 6.4% to 4.8% last year and paid out around $ 9.6 billion at the current share price. This is shown by the company’s annual filing published on Friday.
The divestment occurs when Ma retired as CEO of the Chinese e-commerce company in September and retired from formal business functions to focus on philanthropy.
Alibaba did not disclose the average selling price of its sale. The share price has risen by around 40% since Ma announced its 6.4% stake in the company a year ago.
The stock’s outstanding performance was supported by forecast earnings growth, even though China’s economy is slowing significantly as the COVID-19 pandemic sees more and more people looking for important things online.
Alibaba’s Executive Vice Chairman Joseph Tsai also reduced his stake in the company from 2.3% to 1.6% over the same period. The unloaded shares were worth $ 4.1 billion on Friday.
Both Ma and Tsai have been less and less involved in Alibaba’s regular operations since Daniel Zhang was announced as Ma’s successor. He officially took on this role in September 2019.
Throughout the year, the two million units of Personal Protective Equipment (PSA) have donated through their individual charity arms to hospitals worldwide to help combat the spread of COVID-19.
A April 2019 announcement to the Securities and Exchange Commission announced that Ma would sell up to 21 million shares within a year to support its philanthropic efforts.
Reporting by Josh Horwitz; Edited by Miyoung Kim and Christopher Cushing