Ant Group arm to pare 3.4% stake in Zomato

29 Nov 2023 , 09:03 AM

The Chinese Ant Group is scheduled to sell a 3.4% stake in Zomato for Rs 3,290 crore in a block deal on Wednesday, capping off a near-90% rise in the food delivery app’s shares over the previous year.

Alipay Singapore Holdings, a unit of the Ant Group, has proposed to sell 296.1 million shares at an offer price of 111.28 per share, according to a term sheet provided by the transaction broker, BofA Securities. The offer price is 2.2% lower than Zomato’s Tuesday closing price.

On the NSE, Zomato’s shares closed 0.5% higher at 113.80. Alipay Singapore Holdings owned 3.44% of the company as of September 30, 2023. Antfin Singapore Holdings, another Ant Group affiliate, owned a 6.39% stake in the company.

According to inc42.com, Alipay invested $360 million in Zomato in 2018 and possessed a total of 777 million shares in the firm. However, Alibaba’s payment affiliate sold 218 million shares soon before Zomato’s IPO in July 2021.

SoftBank, through its affiliate SVF Growth Singapore Pte, sold 93.6 million shares, representing a 1.09% ownership position in Zomato, in a deal valued at Rs 1,041 crore on October 20. SoftBank sold 100 million shares valued at Rs 947 crore on August 30.

Following the merger of its portfolio business, the quick-delivery service Blinkit, with the food delivery platform, SoftBank bought a stake in Zomato. The investors have been lowering its stake in Zomato since the Blinkit deal’s lock-in term expired in August.

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