Miguel Cordon · · 1 min readReport: Ant Group may offer zero-interest loans to employees
“Jack Ma’s Ant Group plans to offer zero-interest loans to employees who own illiquid stock options, seeking to boost morale after the company’s landmark initial public offering was suspended in November,” Bloomberg reported, citing sources familiar with the development.
Details:
- The loans for eligible employees will be backed by their restricted stock options, with values calculated after a 2018 funding round. This allows Ant to offer liquidity to its employees without it being required to establish a more up-to-date share valuation.
- Each stock option represents 5.53 shares and will be priced at 195 yuan (US$30.05) in line with the internal buyback price from 2018, the people added.
Context:
- According to the report, Ant is trying to prevent a mass departure of staff after its failed listing on the Shanghai exchange.
- Further details of the loan program are expected to be announced in the next few days.
Editing by Collin Furtado and Jaclyn Tiu
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