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Grapevine: Uber may invest in Zomato-UberEats; Essel may sell rest of solar to Adani
Photo Credit: Reuters

Food delivery app Zomato is in advanced talks to buy UberEats and as part of the deal ride-hailing major Uber may infuse fresh capital of up to $200 million (Rs 1,419 crore at current exchange rate) in the combined entity, persons in the know told The Economic Times. 

It was previously reported on 25 November that Zomato has emerged as the frontrunner to buy UberEats.

“While the agreement is not signed yet, they are in a period of exclusivity, which means both parties cannot engage with others. Uber’s capital commitment of up to $200 million may go along with a few other investment funds,” said one of the persons.

“Zomato will go ahead with the acquisition only if Uber invests in the joint entity,” another person said.

Earlier this year, UberEats came close to selling its India business to Swiggy but talks fell through on tax implications and other terms that weren’t agreeable to both parties. UberEats will help Zomato gain access to the southern Indian market where the company has not been able to make inroads unlike the north, which is its stronghold.

Meanwhile, the Essel Group has reached an agreement to sell the remaining 480 megawatt (MW) portfolio — currently under-construction — to Adani Green Energy, two people in the know told The Economic Times, after selling 205 MW of its operational solar energy portfolio to the group for $181 million.

“Adani Green has agreed to buy the remaining assets, too, once Essel Group operationalises them,” one of the persons said.

The sale of solar energy assets was part of Essel Group promoters’ overall divestment process to reduce debt and repay lenders. A significant portion of the promoters’ debt has already been paid after the sale of 26.7% stake in Zee Entertainment Enterprises to institutional investors.

The group is also selling non-media assets to square off debt within those companies, the report said.

In another development, Godrej Fund Management acquired a stake in Century Real Estate Holdings’ commercial office project in Bengaluru for close to Rs 850 crore ($120 million at current exchange rate), two people familiar with the development told Mint.

The 2.5 million square foot project, located within the Hebbal micro-market in the city’s northern part, is expected to be completed in three years, the report said.

The investment has been made from the fund, Godrej Build to Core-1.

“Godrej Fund Management gets around 35% of built-up area in the project against its stake acquisition. The capital will be used for constructing the project,” said one of the persons.

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