Anthony Sassin, chief investment strategist at the American company “Kraneshares”, said that the division of “Alibaba” into 6 companies is a very important step for it, because it not only shows how the company raises its actual value, but also shows an important maturity of the Chinese company.
He added in an interview with Al-Arabiya: “This division process is organizing an event, and its aim is to unlock value for shareholders or consumers, which should be a goal for every company.”
He pointed out that “Alibaba” reminds of “Google” in 2015, when its share rose by 14 and 15%, as happened with Alibaba, and when the reorganization process ended, Google’s share rose again by 20%.
It is noteworthy that 70% of Alibaba’s business is related to e-commerce, but there are other important activities such as cloud computing, which represents 8% of the company’s activity, and 7% of logistical activity, as well as entertainment and e-commerce activities globally.
He said that these activities are growing in light of the main activity of “Alibaba”, which is e-commerce, and the value of these activities will appear within a year or two with the listing of the divided companies on the Hong Kong or New York stock exchanges.
He stated that the division of a company such as “Alibaba” is a very complex process that will result in 6 companies, each with a CEO. It is remarkable that the CEO of the Alibaba Group, “Daniel Chang”, will not be at the head of the most important department in the company, which is e-commerce, but he will be the head of the unit of “cloud intelligence”, and this reveals the company’s interest in the Internet, the so-called “industrial Internet”.
He expected that the company’s affairs would become clear within 8 months and that the cloud intelligence unit would be listed soon, followed by the listing of “Kani Neo” and it was an independent company before it was bought by “Alibaba”, so it can be re-listed.
He pointed out that the return of “Jack Ma” to China is remarkable, especially in conjunction with the decision to divide the “Alibaba” group, although it was positive, and China is trying to give good signals regarding the regulations of Internet companies, especially as it focuses heavily on consumption in achieving the target growth rate.