Alibaba to sell $193 mn stake in Zomato through block trade
Mumbai: Alibaba aims to sell shares of Zomato Ltd worth at least $193 million through a block trade, according to deal terms seen by Mint.
Alibaba, through its entity Alipay Singapore Pte Ltd, aims to sell 262.9 million shares representing 3.07% stake in the company.
It is offering the shares to institutional investors at a floor price of ₹60 apiece, a 5.59% discount to the last closing price, fetching ₹1,580 crore at the floor price.
Alibaba will continue to hold around 10% stake in the food delivery platform after the deal.
Morgan Stanley is the sole broker to the block trade, which will be executed on 30 November.
Previously, investors such as Uber and Tiger Global liquidated part of their holdings in Zomato when its initial public offering (IPO) lock-in expired earlier this year. Uber sold its entire 7.8% stake in Zomato in August for ₹3,088 crore.
Several investors holding stakes in technology firms that listed last year are now liquidating part of their shareholding following the expiry of the 12 month post-IPO lock.
On 17 November, Mint reported that Japan’s SoftBank will sell a third of its stake in One97 Communications Ltd, the owner of the Paytm payments app, through a $200 million block deal. Similar block trades have been seen with regard to tech firms such as Nykaa and Policybazaar.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.