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Zomato shareholder Alibaba to sell $193 mn stake through block trade

By Swaraj Singh Dhanjal

  • 29 Nov 2022
Zomato shareholder Alibaba to sell $193 mn stake through block trade
Credit: Reuters

Zomato shareholder Alibaba is looking to sell shares of Zomato Ltd worth approximately atleast $193 million through a block trade, as per deal terms seen by Mint.

Alibaba, through its entity Alipay Singapore Pte Ltd, is looking to sell 262.9 million shares  representing 3.07% stake in the company.

Alibaba is offering the shares to institutional investors at a floor price of Rs60 apiece, a 5.59% discount to the last closing price, fetching Rs1,580 crore at the floor price.

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Post the deal Alibaba will continue to hold around 10% stake in the food delivery platform.

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 IPO lock-in expired earlier this year. Uber sold it's entire 7.8% stake in Zomato in August for a consideration of Rs3,088 crore.

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Several investors holding stakes in technology firms that listed last year are now liquidating part if their shareholding as 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 in various tech firms such as Nykaa and Policy bazaar.

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