Highlights:
- Jack Ma sells shares worth $ 9.6 billion
- Alibaba Executive VC Joseph Tsai also reduced his stake in the company
- The firm did not disclose the average selling price of his divestment
Co-Founder of Alibaba Group, Jack Ma, has cut his stakes in the firm from 6.4$ to 4.8% over the past year, cashing out almost $ 9.6 billion (or around Rs. 72.121 crores) at its current share price, the company’s annual filing showed on Friday after it was released.
The disinvestment has come as MA retired as the Executive Chairman of the e-commerce giant in September and pulled out from formal business roles to focus on philanthropy.
The firm, Alibaba, however, did not disclose the average price the shares were sold for during the disinvestment. When Jack Ma reported his 6.4% stake in the firm a year ago, the share price has risen almost 40% since then.
The stellar performance of the company in the stock market has been helped by forecast-beating earning growths even when China’s economy declined sharply as more people chose to shop online due to the novel Coronavirus pandemic.
Also Read: 10 Made In India Apps That You Should Know!
Joseph Tsai, the Executive Vice Chairman (VC) of Alibaba also reduced his stake in the company in the same period from 2.3% to 1.6%. This offload of shares was worth a whopping $ 4.1 billion which roughly exchanges to Rs. 10,517 crore as on Friday.
Both Jack Ma and Joseph Tsai have been slowly going away from the Alibaba’s regular operations as Daniel Zhang was announced the new Chairman and the successor of Jack Ma in the company. In September 2019, Zhang formally took charge of the role in the company.
Throughout the year 2020, the two top executives of the company have donated millions of units of the Personal Protective Equipment (PPE) kits through their own charity arms to the hospitals on a global level to better combat the novel Coronavirus and its spread.
According to the filing of April 2019 with the US Securities and Exchange Commission (US-SEC) it was stated that Jack Ma would plan to sell up to 21 million or 2.1 crore shares in under 1 year to support his philanthropic efforts.
