Zomato Shares: Alibaba Group to sell Rs 26.29 crore shares of Zomato on November 30

Chinese internet conglomerate Alibaba Group sells 262.9 million shares Zomatorepresenting a 3.07% stake in a food technology company, for approximately $193 million in a block deal.

The sale will take place on Wednesday at a floor offer price of Rs 60 per share, a 5.59% discount from Tuesday’s closing price of Rs 63.55 per share on the BSE, according to a terms and conditions list issued by investment banker Morgan Stanley, which is brokering the exchange. to deal with

ET reviewed a copy of the terms and conditions.

As of September 30, Alibaba Group’s subsidiaries Alipay Singapore Holding Pte Ltd and Antfin Singapore Holding Pte Ltd jointly held a 12.98% stake in the Gurgaon food delivery platform under Zomato’s shareholding scheme as of September 30. Wednesday’s block sale will be led by Alipay Singapore Holding Pte Ltd.

The Alibaba Group did not respond to inquiries sent by ET prior to publication on Tuesday. Zomato declined to comment on the development.

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Alibaba Group first invested in Zomato through Ant Financial in 2018, investing $210 million in a 14.7% stake, which was later raised to 23%.

With this partial exit, Alibaba joins the list of Zomato investors who have sold shares in the company over the past two years. Including major shareholders of Zomato Sequoia CapitalTiger Global, Uber and Delivery Hero have sold or reduced their stakes in the company.

While Sequoia Capital previously reduced its stake in September-October 2021 from 6.4% to 4.4%, Delivery Hero sold its entire 1.6% stake in Zomato in July this year through open market operations. In August of this year,
Tiger Global and Uber also sold shares in Zomato.the last one is for sale
all of his 7.78% shares he received as a result of the sale of his food delivery business UberEats in Zomato in 2020.

Recently, Zomato has been in the spotlight due to several high-level appearances. Earlier this month, his co-founder
Mohit Gupta resigned after four and a half years with the company. Prior to this, the head of new initiatives Rahul Ganju and vice president and head of intercity legends Siddharth Jawar also left the company.

For the quarter July-September,
Zomato nearly halved its losses to Rs 250.8 crore, from Rs 434.9 crore a year earlier. The platform also increased its operating revenue by 62% year-on-year to Rs 1,661.3 crore over the three-month period.

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