Alibaba Group Holding Ltd will be hosting a conference call on Thursday, the company said on Wednesday, to discuss its plan to split into six units and explore fundraisings or listings for most of them, Reuters reported.
The conference call is scheduled for 8 am (0000 GMT) on March 30, the company said, according to the report.
Alibaba shares gained more than 14 percent in New York on Tuesday and were trading 12.4 percent higher in Hong Kong on Wednesday at press time.
Earlier, it was reported that Alibaba intends to split its operations into six standalone units, each managed by a different chief executive.
Chief Executive Officer Daniel Zhang announced the restructuring in an internal email on Tuesday, stating that each unit needs to prove itself in the market environment and accomplished units can go public and raise funds on their own.
Zhang remains the main leader overseeing the strategies of all units. The restructuring of the tech giant will create six business units with six different CEOs.
The restructuring of the tech giant will create six business units with six different CEOs. They are: Alibaba Cloud intelligence group, which includes the cloud and DingTalk businesses, headed by Daniel Zhang as CEO; Taobao and Tmall’s business group, Trudy Dai as CEO; local life service group, Yu Yongfu as CEO; Cainiao Network, the logistics and delivery arm, is still under the leadership of Wan Lin as CEO; overseas digital commerce group, which includes cross-border B2C platform AliExpress and other overseas shopping platforms, is led by CEO Jiang Fan; and the entertainment group, which include Alibaba Pictures and video platform Youku, is led by CEO Fan Luyuan.
Additionally, Alibaba will establish multiple smaller operative units, covering online healthcare to offline retail. Particularly, Hou Yi remains the CEO of the grocery chain FreshHippo, according to the report.
The news of the e-commerce giant’s restructuring plan also came after Alibaba’s founder Jack Ma made a rare public appearance in China, according to various news reports.
Two people close to the matter said Alibaba presented its restructuring plan to China’s regulators before announcing it publicly and received positive feedback, Financial Times reported on Tuesday. One person close to the ecommerce group said that while no formal demands were made for the split, regulators “remained keen to see China’s tech giants slim down their empires”, the report added.
The break-up will set Alibaba on a similar path to its ecommerce rival JD.com, which has retained a controlling stake in a diverse set of businesses, FT added. Each unit has gone on to raise outside capital, with several already listed in Hong Kong. Alibaba’s chief rival Tencent has also been slowly divesting stakes it holds in major Chinese groups.
Keyword: Alibaba to host conference call on Thursday to discuss split plans - report