Japan’s SoftBank (t) owns a 34.4% stake in Alibaba (Alibaba), may be the Alibaba’s largest shareholder, but Alibaba for an initial public offering (IPO), SoftBank’s voting rights will be limited, so the founder of this appliance merchant giant have more control over the company.
alibaba filing with the Securities and Exchange Commission on Tuesday (Securities and Exchange themselves), the documents show that home appliance maker giant plans and its main shareholder, founder Jack Ma (Jack Ma), the co-founder and vice chairman Mr. Tsai (Joe Tsai), Japan’s softbank and Yahoo (Yahoo) voting rights issue an agreement after the IPO.
alibaba, according to the company’s largest shareholder softbank will have the right to nominate a board member, but in the case of without the permission of Mr. Ma and Mr. Tsai cannot replace any director nominated by alibaba holding partners.
after the Hong Kong stock exchange last year refused to accept the company structure, alibaba decided to go to New York. Alibaba’s corporate structure will allow 28 partners, including Mr. Ma and Mr. Tsai, nominated the majority of the members of the board of directors.
the prospectus said, after the completion of the IPO softbank will continue holds more than 30% of the shares, but will take more than a 30% stake in outside part of the voting rights granted to a stake in the trust in the charge of Mr. Ma and Mr. Tsai. If softbank in alibaba stake below 15%, will lose the power to nominate directors.
, according to people familiar with softbank temporarily no plans to sell shares of alibaba.
softbank’s shares fell 3.4%, or greater than the base date after the index’s 2.3% drop, mainly because the stock has nearly doubled since 2013, after investors took profits. The shares have dropped 18% since early. Softbank will be announced late on Wednesday a record annual profits, thanks to the valuation of investment products.
shortly after Mr Ma founded in 1999, alibaba, softbank investment in the company in 2000. Softbank’s founder and chief executive Masayoshi Son (Masayoshi Son) has been a alibaba director since 2000. Softbank is very popular with Japanese retail investors, is one of the largest stake in the nikkei index weights.
yahoo was alibaba’s largest shareholder, but alibaba in 2012 to buy back the stake held by the company. The trade terms, if alibaba public before in December 2015, has the right to buy back yahoo’s stake further.