According to a report on Tuesday, the Chinese payments company Alipay intends to sell its 3.4% share in the world’s largest food delivery company Zomato Ltd. for Rs 3,300 crore ($395 million) through block deals on Indian stock exchanges.
Ant Group-owned Alipay will sell 29.6 crore shares to offload its entire 3.44% stake, according to three sources and a recent examination of the deal’s term sheet.
The sources cited three sources who declined to be identified because the plan is private. Bank of America and Morgan Stanley are advisers on the deal, which is expected to be executed later this week.
The shares of Zomato have increased by over 90% this year, following a more than 50% decline in 2022 during a global period of trouble for tech stocks.
The first source stated that Alipay “wants to cash out… the (market) timing is good,” alluding to the sharp increase in Zomato’s stock price in recent months.
According to the term sheet, the block deals will be carried out at a price of Rs 111.28 per share, which is 2.2% less than Zomato’s Tuesday closing price of Rs 113.8.
Japan’s SoftBank sold a 1.1% share in Zomato in October.
Alipay‘s departure from Zomato coincides with a trend of other Chinese investors reducing their ownership of Indian businesses. China’s Antfin sold a 10.3% share in the massive fintech company Paytm in August.
After taking a beating during last year’s market collapse, when investors also questioned the exorbitant valuations of some Indian startups that had recently made their stock market debut, tech stocks like Zomato have recovered.
Read More: https://cioworldindia.com/
