Alibaba Group founder and executive chairman Jack Ma and executive vice chairman Joseph C. Tsai will sell a total of 30.6 million of their shares starting next month, “for ordinary wealth planning purposes and to meet philanthropic commitments”, according to the company’s latest filing with the US Securities and Exchange Commission.
Up to 21.4 million shares, representing approximately 12.8% of the holdings under Jack Ma’s beneficial ownership will be sold between April 2019 and April 2020 by JC Properties Limited and JSP Investment Limited, two entities affiliated with Ma.
Alibaba closed at US$180.36 Thursday, 0.34% lower compared to the previous trading day.
Ma’s offloading move will be executed by third-party brokers under a pre-arranged share sales plan adopted by his two entities and The Jack Ma Philanthropic Foundation. However, the filing does not offer further details.
Up to 9.2 million shares, which account for 15.5% of the holdings under Joseph C. Tsai’s beneficial ownership, will be sold by PMH Holding Limited and Parufam Limited, entities affiliated with Tsai, commencing in April 2019 and through the end of 2019.
Likewise, Tsai’s offloading move is also under a pre-arranged share sales plan adopted by these two entities and the Joe and Clara Tsai Foundation. Details on this plan aren’t disclosed either.
In 2014 these two co-founders announced they would establish personal charitable trusts, which they have funded through their share options. Their philanthropic activities focus on causes including the environment, medicine, education and culture worldwide, according to the press release. Jack Ma said wanting to spend more time on philanthropic pursuits in education were the main reason for stepping down as Alibaba chairman in 2018.
