(Bloomberg) – Alibaba Group Holding Ltd.’s largest individual shareholders, Jack Ma and Joe Tsai, have pledged part of their combined $ 35 billion stake in the e-commerce giant in exchange for large bank loans , The Financial Times reported, citing company documents. .
The stock pledges were made by offshore companies controlling more than half of the duo’s stake in Alibaba, which stood at 5.8% in December, according to the FT. The documents did not disclose the amount of the share pledges, which began when Alibaba was listed in the United States in 2014.
The two billionaires pledged their shares to banks including UBS Group AG, Credit Suisse Group AG and Goldman Sachs Group Inc., the newspaper reported.
Alibaba told the FT that co-founder Ma and its subsidiaries currently have no outstanding loans secured by the company’s shares. In Vice President Tsai’s case, his outstanding equity-backed loans were easily manageable, with conservative loan-to-value ratios to provide a substantial cushion against triggering a margin call, according to the report citing Alibaba.
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