Jack Ma, the founder of Alibaba Group Holding Ltd., has postponed his intention to sell millions of dollars’ worth of shares following a significant drop in the Chinese e-commerce giant’s stock last week.
Despite regulatory filings indicating Ma’s plan to offload 10 million shares valued at approximately $871 million, recent reports reveal that he has not sold any shares. This decision is attributed to Alibaba’s stock price falling below the level sought by the billionaire, as highlighted in a post by Alibaba Chief People Officer Jane Jiang Fang on the company’s internal forum.
Alibaba’s shares have experienced a decline of over 10% year-to-date.
Jiang emphasized in the note that Ma’s office has officially stated his commitment to retaining his Alibaba stake, emphasizing that the current market price is considerably lower than the actual value. Ma is confident that the value of Alibaba’s businesses will rise, supporting his decision not to sell.
The need for funds within Ma’s family office to invest in agricultural enterprises and charitable endeavors led to arrangements for a share sale at a price set in August through a broker, as explained by Jiang.
In a notable shift, Jack Ma has ventured into agriculture, investing a 10% stake in an agrotech startup, redirecting focus from his role in Alibaba.
Alibaba Group is currently undergoing a significant restructuring. Initially planning to split into six separate units, each with its own CEO and board of directors, the Chinese e-commerce giant has recently announced a reconsideration of plans, not only for its cloud business but also for the listing of its grocery chain Freshippo, citing the need to “evaluate market conditions.”
Jack Ma, who founded Alibaba in 1999, stepped down as chairman in 2019. He has maintained a relatively low profile since then, remaining a shareholder in Alibaba, even as he faced scrutiny from Chinese authorities for criticizing financial regulators and banks.
