Alibaba’s Jack Ma and Joe Tsai pledged shares in exchange for a loan, FT reports

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(Bloomberg) – The largest individual shareholders of Alibaba Group Holding Ltd. Jack Ma and Joe Tsai have pledged a portion of their combined stake in the e-commerce giant worth $ 35 billion in exchange for significant loans from banks, the Financial Times reported, citing company documents. …

According to the FT, the pledges were made by offshore companies that control more than half of the duo’s stake in Alibaba, which stood at 5.8% in December. The documents did not disclose the amount of the share pledge, which began with Alibaba’s listing in the US in 2014.

The newspaper reported that two billionaires have pledged their shares to banks including UBS Group AG, Credit Suisse Group AG and Goldman Sachs Group Inc.

Alibaba told the FT that co-founder Ma and his affiliates do not currently have any outstanding loans secured by the company’s shares. In Vice Chairman Cai’s case, his outstanding stock-backed loans were easily manageable, with a reasonable loan-to-value ratio to provide a substantial cushion against initiating a collateral demand, the report said, citing Alibaba.

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