Dow Jones Newswires: Ant Group’s consumer-lending unit gets approval to raise $1.5 billion in new capital

by | Jan 3, 2023 | Stock Market

The consumer-finance arm of China’s Ant Group Co. has obtained regulatory approval to raise the equivalent of $1.5 billion in new capital. Chongqing Ant Consumer Finance Co., the Chinese fintech company’s unit that houses its once high-flying personal-lending business, gained approved to increase its registered capital to 18.5 billion yuan ($2.68 billion) from CNY8 billion, implying a capital increase of CNY10.5 billion, according to a statement dated last Friday by the Chongqing branch of the China Banking and Insurance Regulatory Commission.

The regulatory approval came after some investors involved in the fundraising disclosed the financing plan in November last year. The capital increase size marked a scale-down from Ant’s earlier ambition to raise more than $3 billion in late 2021. With the newly approved capital injection, Ant Group, controlled by billionaire Jack Ma, would pump in CNY9.25 billion for a 50% controlling stake in the consumer-finance unit. A tech-focused unit of state-owned investment firm Hangzhou Finance And Investment Group Co. will invest CNY1.85 billion to become the second-largest shareholder with a 10% stake. Other investors in the deal include a subsidiary of electronics-parts manufacturer Sunny Optical Technology Group Co., and Guangzhou Boguan Telecommunication Technology Co., …

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