Mumbai: Ant Group’s payments platform Alipay is set to offload shares of Zomato Ltd in a $395 million block deal on Wednesday, according to a term sheet reviewed by Mint.
Alipay’s share sale follows a partial stake sale by Softbank Group in the food delivery aggregator last month where the Japanese investor sold 1.1% stake for ₹1,200 crore.
Alipay is selling 296 million shares in the online food delivery company and expects to raise ₹3,290 crore or ($395 million).
Shares will be offloaded at ₹111.28 apiece, a 2.2% discount to the closing price of ₹113.80 apiece on Tuesday.
Bofa Securities India Ltd and Morgan Stanley are arranging the trade.
According to exchanges, over the past one year, Deepinder Goyal-founded Zomato’s share price has risen by 80% from ₹62.05 to ₹113.8 now.
Alipay invested $360 million in 2018, according to an Inc42 report. Alibaba Group has also separately invested through Ant Financial in Zomato.
Alipay owns 3.44% stake in Zomato while Ant Group’s other entity Antfin Singapore Holdings Pte holds 6.39% stake in the company.
Other VC investors have steadily sold their stakes in the open markets.
On 30 August, 2023, SoftBank’s Svf Growth (Singapore) Pte. Ltd had sold a 1.17% stake in Zomato Ltd for ₹940 crore ($114 million).
This followed a similar stake sale by other investors in Zomato.
On 28 August, Tiger Global -backed Internet Fund III Pte Ltd had sold 123.5 million shares, or 1.44% in Zomato at an average price of Rs.91.01 apiece via bulk deal on the BSE.
Between 25 July last year and 2 August, the New York-based hedge fund sold over 184 million shares, or 2.34%, of Zomato in the open market.
On 29 August, DST Global, via its investment firm Apoletto Asia , too had monetized around 32 million Zomato shares at Rs.90.10 apiece.
During the aforementioned stake sales by offshore investors, companies including Axis Mutual Fund, SBI Life Insurance Co., ICICI Prudential Life Insurance, Founders Collective Fund, Morgan Stanley Asia Singapore, and Societe Generale picked up the shares of the food delivery company.
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Updated: 28 Nov 2023, 07:39 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
