Alipay To Sell 3.4% Stake in Zomato via US$395mn Block Deal: Report
IANS 29 November 2023
Digital payments platform company Alipay, owned by Ant group, is reportedly selling a 3.44% stake in online food delivery platform Zomato and is expected to raise up to $395 million via a block deal.
 
The shares translate to up to 296.1mn (million) shares, according to a term sheet seen by The Wall Street Journal.
 
As per the term sheet, the floor price was kept at Rs111.28 (US$1.33) per share, a 2.2% discount to Zomato's last traded price of Rs113.80.
 
The expected settlement date is 30th November, the report mentioned.
 
According to the term sheet, BofA Securities and Morgan Stanley are acting as placement agents on the deal.
 
Meanwhile, Zomato has registered Rs36 crore as profit after tax (PAT) in the quarter ending 30th September , as its revenues surged 71% to Rs2,848 crore.
 
The online platform had registered a net loss of Rs302 crore with revenues at Rs1,661 crore in the same period last year.
 
"We think that QoQ GOV growth in food delivery in the next quarter should be moderate—around high single digit which should translate to about 25%-30% YoY GOV growth," Zomato CFO (chief finance officer) Akshant Goyal said in a letter to shareholders.
 
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