Posted May 07, 2019 07:01:04 Alibaba’s plans to be a state entity are being put to a public vote, a move that could see the online giant become the largest state-controlled company in the world.
The company announced in a filing on Monday that it would vote to become state-led in the company’s fourth fiscal quarter, ending on June 30.
The announcement comes after months of delays as Alibaba faced a series of regulatory hurdles, including the company being forced to divest a large chunk of its stake in Alibaba Group Holdings Ltd.
in 2016, and a series that culminated in the government declaring Alibaba a public company in 2018.
The Alibaba group has been struggling to gain the public’s trust, particularly after the government imposed an anti-trust fine on the company in 2019 for allegedly misleading investors.
Alibaba has previously announced that it plans to launch a new business unit in the coming months.
In its filing, Alibaba said it has been considering the public vote since its fourth quarter results were released last month, and said it had taken steps to ensure that its shareholders’ interests were fully represented.
Albacore Capital and its Hong Kong-based investors have been investing in Alibaba since 2017.
Alphabet’s valuation was raised by more than $4 billion in 2019, according to a study by Morgan Stanley.
The investment firm noted that in the same period, Alibaba’s stock price rose by $11 billion.