Ant Group’s Alipay set to exit Zomato in $395 mn block deal
Mint. Alipay’s share sale follows a partial stake sale by Softbank Group in the food delivery aggregator last month where the Japanese investor sold 1.1% stake for ₹1,200 crore. Alipay is selling 296 million shares in the online food delivery company and expects to raise ₹3290 crore or ($395 million).
Shares will be offloaded at ₹111.28 apiece -- a 2.2% discount to the last closing price. Zomato shares closed at ₹113.80 apiece on Tuesday. Bofa Securities India Ltd and Morgan Stanley are arranging the trade.
According to exchanges, over the past one year, Deepinder Goyal-founded Zomato’s share price has risen by 80% from ₹62.05 to ₹113.8 now. Alipay invested $360 million in 2018, according to an Inc42 report. Alibaba Group has also separately invested through Ant Financial in Zomato.
Alipay owns 3.44% stake in Zomato while Ant Group's other entity Antfin Singapore Holdings Pte holds 6.39% stake in the company. Other VC investors have steadily sold their stakes in the open markets. On 30 August, 2023, SoftBank’s Svf Growth (Singapore) Pte.
Ltd had sold a 1.17% stake in Zomato Ltd for ₹940 crore ($114 million) . This followed a similar stake sale by other investors in Zomato. On 28 August, Tiger Global -backed Internet Fund III Pte Ltd had sold 123.5 million shares, or 1.44% in Zomato at an average price of Rs.91.01 apiece via bulk deal on the BSE.
Between 25 July last year and 2 August, the New York-based hedge fund sold over 184 million shares, or 2.34%, of Zomato in the open market. On 29 August, DST Global, via its investment firm Apoletto Asia , too had monetized around 32 million Zomato shares at Rs.90.10 apiece. During the aforementioned stake sales by offshore investors, companies including Axis Mutual Fund, SBI
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