Alibaba Subsidiary Seeks US $ 8 Billion from Investors

Jakarta -Ant Financial Services Group, a subsidiary of Alibaba Group Holding Ltd, is seeking investors to fund the company with a value of up to US $ 8 billion, or nearly Rp110 trillion.

Temasek Holdins, a Singapore-based company, is likely to become a major investor in the latest funding phase. Reuters Published Wednesday (11/4/2018), this funding stage before Ant Financial realize the plan go public.

The Reuters source whose identity is concealed reveals that the fund can reach US $ 8 billion-US $ 10 billion, driven by the huge interest of investors. Ant Finance and Temasek declined to comment.

If Ant Financial, which manages Alipay’s payment service, raised $ 8 billion, the company’s valuation will rise to $ 150 billion. The value is equivalent to Rp2,062 trillion.

Some analysts see Ant Financial as one of the most valuable assets for Alibaba. The company last performed the financing phase in 2016.

Having dominated the payment system in China, now Ant Financial is targeting the Indian and Thai markets. The company has purchased shares of Indian payment company Paytm and Thailand’s financial technology (fintech) company Ascend Money.

Ant Financial is also eyeing a wider market in the US by purchasing shares of MoneyGram International, which serves international funds transfers. However, the transaction was rejected by Donald Trump’s government because it feared could threaten national security.

In addition to Alibaba, Ant Financial shares are owned by a number of Chinese SOEs namely China Life Insurance and China Post Group, the holding company of Postal Savings Bank of China.

Source : Reuters

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