Antfin likely to sell over 3% stake in Paytm via block deal on August 25

Deal is said to be valued at around $234 million

Paytm promoter Antfin is likely to sell a 3.6 per cent stake, or 23 million shares, in fintech company Paytm via block deals on August 25.

The floor price for the deal is likely to be discounted at Rs 880.10 per share, which is a 2.7 per cent discount from the closing price of Rs 904.45 recorded on Thursday.

Citigroup has been appointed broker to the deal, which is reportedly valued at around $234 million.

On August 7, the company informed the stock exchanges that Vijay Shekhar Sharma, founder and chief executive officer (CEO) of Paytm’s parent One97 Communications, agreed to purchase a 10.3 per cent stake, worth $628 million, in the fintech firm from Antfin (Netherlands) Holding BV. The purchase will be made off the 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 in Paytm. This deal will make Sharma the largest single shareholder.

The company had said that after the transaction, there would be no change in the management or control of Paytm, and Sharma will continue as managing director and CEO. Further, the existing board will continue as is.

Antfin is the Netherlands-based arm of Chinese fintech giant Ant Financial.

(With inputs from Reuters)