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SoftBank may invest $3 bn in Paytm Mall; Japan’s Sompo to up stake in insurance JV
Photo Credit: Reuters

Japan's SoftBank Group is in preliminary talks to invest as much as $3 billion (Rs 20,180 crore) in online marketplace Paytm Mall, The Economic Times reported, citing two people aware of the development.

In April, SoftBank had agreed to invest $400 million (Rs 2,600 crore) for 21% stake in Paytm Mall.

The news of preliminary talks comes at a time when SoftBank is still undecided on selling its more than 20% stake in Flipkart to Walmart as it weighs tax liability arising from the sale as well as further value in Flipkart.

Citing a person in know, the report said the talks with Paytm Mall would proceed only if SoftBank finalised its exit from Flipkart.

Separately, private sector lender Karnataka Bank is set to make a partial exit from Universal Sompo General Insurance Company Ltd by selling stake to existing shareholders Sompo Japan Nipponkoa Insurance Inc. and Dabur Investment Corporation, The Economic Times reported.

Karnataka Bank will sell 6% stake in the company to the Japanese general insurer for Rs 125 crore and about 2% stake to Dabur Investment Corporation for Rs 42 crore, according to the report.

The transaction is subject to regulatory approval from Insurance Regulatory and Development Authority of India.

In January-March quarter, Universal Sompo General Insurance Company raised Rs 100 crore in a rights issue, which was subscribed only by Sompo and Dabur, according to the report.

The shareholders of Universal Sompo General Insurance Company are Sompo Japan Nipponkoa Insurance Inc. (28.42%), Dabur Investment Corporation (10.74%), Allahabad Bank (28.52%), Indian Overseas Bank (18.06%), and Karnataka Bank Ltd. (14.26%).

In November 2007, Universal Sompo General Insurance Company had obtained regulatory approval to undertake general insurance business.

The company’s gross written premium was ₹2,313 crore as on 31 March 2018, according to the report.

In another development, US-based private equity firm General Atlantic’s deal to acquire majority stake in Hyderabad-based share registry Karvy Computershare Pvt. Ltd is yet to close due to delay in regulatory clearances, Mint reported, citing three people aware of the development.

In August 2017, VCCircle reported that General Atlantic had agreed to acquire 83% stake in Karvy Computershare for $240 million (Rs 1,529 crore).

The deal will see the exit of Australian share registry company Computershare Ltd and some other shareholders.

Citing a person aware of the development, the report said the market regulator has stopped the deal owing to the report of the R Gandhi panel, which had said that one single unregulated entity cannot hold more than 15% in a registrar and transfer agent (RTA) and, together, unregulated funds cannot hold more 49% in the RTA.

Separately, private equity firm Everstone Capital has held preliminary talks with a few investment bankers on the possibility of an initial public offering for its quick service restaurant chain Burger King India Pvt. Ltd, Mint reported, citing two people aware of the development.

F&B Asia, an investment vehicle managed by Everstone, owns and operates several marquee brands such as Burger King in India and Indonesia, and Domino’s Pizza in Indonesia.

The food platform also houses brands such as Masala Library, Farzi Café, Pa Pa Ya, Masala Bar, Harry’s, Pind Balluchi and Duck & Rice.

Burger King India’s net sales stood at Rs 233.4 crore for the year through March 2017 as against Rs 138.6 crore a year ago, according to VCCEdge, the data research platform of News Corp VCCircle.

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