Mumbai: Ant Group’s payments platform Alipay is set to offload shares of Zomato Ltd in a $395 million block deal on Tuesday, according to a term sheet reviewed by Mint.
Alipay’s share sale follows Softbank Group’s partial stake sale in the food delivery aggregator last month, where the Japanese investor sold a 1.1% stake for ₹1,200 crores.
Alipay is selling 296 million shares in the online food company and expects to cash in ₹3290 crore or ($395 million).
Stocks will be downloaded at ₹111.28 per — 2.2% discount to the last closing price. Zomato shares closed at ₹113.80 per Tuesday.
Bofa Securities India Ltd and Morgan Stanley are arranging the trade.
According to exchanges, over the past year, the share price of Zomato, founded by Deepinder Goyal, has risen by 80% from ₹62.05 to ₹113.8 now.
Alipay invested $360 million in 2018, according to a report by Inc42. Alibaba Group has also separately invested through Ant Financial in Zomato.
Alipay owns a 3.44% stake in Zomato while AntGroup’s other unit Antfin Singapore Holdings Pte owns a 6.39% stake in the company.
Other VC investors have consistently sold their investments in the open markets.
On 30 August 2023, SoftBank’s Svf Growth (Singapore) Pte. Ltd sold 1.17% stake in Zomato Ltd for ₹940 crore ($114 million).
This followed a similar investment sale by other investors in Zomato.
On 28 August, Tiger Global-backed Internet Fund III Pte Ltd sold 123.5 million shares, or 1.44% in Zomato at an average price of Rs.91.01 in a wholesale deal on the BSE.
Between July 25 last year and August 2, the New York-based hedge fund sold more than 184 million shares, or 2.34%, of Zomato in the open market.
On 29 August, DST Global, through its investment firm Apoletto Asia, also monetized about 32 million Zomato shares at Rs.90.10 each.
During the said investment sales by foreign investors, companies including Axis Mutual Fund, SBI Life Insurance Co., ICICI Prudential Life Insurance, Founders Collective Fund, Morgan Stanley Asia Singapore and Societe Generale took the shares of the food delivery company.
Milestone Warning!Livemint tops charts as the fastest growing news site in the world 🌏 Click here to know more
Catch all Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates and Live Business News.
More or less
Updated: 28 Nov 2023, 19:39 IST