 "Vijay Shekhar Sharma to buy a 10.3% stake in Paytm from Antfin for $628 mn")
Vijay Shekhar Sharma, founder and chief executive officer (CEO) of Paytm's parent One97 Communications, has agreed to purchase a 10.3 per cent stake in the fintech firm from Antfin (Netherlands) Holding BV, the company said in a filing on Monday.
The purchase will be made off-market via Sharma's 100 per cent owned Netherlands-based entity Resilient Asset Management BV. After the transaction, Sharma's stake in the company will rise to 19.42 per cent, and Antfin will cease to be the largest shareholder of Paytm.
Based on the closing price of the company's shares on August 4, the value of the transaction will be $628 million.
Also Read: Q1 results: India Inc profit surges 65% but shows lopsided growth
Also Read: Q1 results: India Inc profit surges 65% but shows lopsided growth
"As per the agreement executed between the parties, Resilient will acquire ownership, and voting rights, of the 10.30 per cent block. In consideration for the acquisition of the 10.30 per cent stake, Resilient will issue optionally convertible debentures (OCDs) to Antfin, which in turn will allow Antfin to retain the economic value of the 10.30 per cent stake, demonstrating Antfin's continued confidence in the business potential. Accordingly, no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Sharma, directly or otherwise," the company said in the filing.
"As we announce this transfer of ownership, I would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years," Sharma said.
After the transaction, there would be no change in the management or control of Paytm, and Sharma will continue as the managing director and CEO of the company. Further, the existing board will continue as is.
"Paytm remains a professionally managed company with no identifiable promoter. Further, there is no nominee of Antfin on the Board of Paytm," the company said.
Also Read: World entering a highly disruptive green energy era, says Mukesh Ambani
Also Read: World entering a highly disruptive green energy era, says Mukesh Ambani
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%