Splitting Up
$BABA-SW(09988.HK$ In the US when a company splits up it is usually tax-free but not always. It can take a long time to do the split especially if the company requests a ruling from the tax authorities that it qualifies as tax-free. Any Chinese accountants out there who care to opine on the time it takes to do a spin-off in China? Now that I think about it, given the VIE structure, it might just be changing a few contracts.
Anyway, I have no idea how it will work and it bothers me.
Anyway, I have no idea how it will work and it bothers me.
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Live in Wisconsin. CPA. Have been investing/speculating for 35 years now. Have made very good money and lost much too.
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Jeff BoydOP : Read the press release. This is primarily just an internal restructuring although some of the subsidiaries might IPO in which case the cash goes to the company. I don't think it is a big deal.
Macdonell J Jeff BoydOP: Baba's restructuring plan is not new in China. JD and Tencent have done it exactly the same. JD has listed its subsidiary JD Logistics and Tencent has listed its subsidiary Meituan, and the shareholders were accorded with shares in their listed subsidiaries.
shark11 : This is not a new thing in China. There was the idea of a spin-off listing as early as 19/20, but progress was halted by the government at the time, and the signals released now indicate that the government needed and relaxed the management of Internet companies, indicating that it would further open up a fast track in terms of policies and audits.
Silverbat : A creative methos to dump accumulated shares with teams