Antfin Plans to Offload 3.6% Stake in Paytm, Continuing Reduction in Ownership
Antfin Plans $234 Million Block Deal to Sell 3.6% Stake in Paytm, Further Trimming Ownership"
Reports have surfaced indicating that Antfin, a notable shareholder of Paytm, is poised to execute a block deal to sell a 3.6% stake in the prominent Indian payments firm. This move aligns with Antfin's ongoing efforts to gradually reduce its stake in Paytm, a trend it has been following.
According to insights from CNBC-TV18, the anticipated block deal is scheduled to take place on Friday. The deal's floor price is established at 880 rupees per share, reflecting a modest 2.7% discount in relation to Paytm's most recent closing price of 904.45 rupees.
The responsibility of facilitating this significant transaction has been entrusted to Citi, the chosen broker for the deal. The estimated value of this deal stands at an impressive $234 million.
At the time of this report, both Paytm and Ant Group are yet to respond to inquiries made by Reuters.
Recent Developments and Strategic Shifts
In a noteworthy development earlier this month, Paytm made headlines by announcing that its Chief Executive, Vijay Shekhar Sharma, intends to purchase a 10.3% stake held by Antfin in the company. This deal solidified Sharma's status as the company's single largest shareholder, marking a strategic shift in ownership.
Antfin, which operates from the Netherlands and is affiliated with the renowned Chinese fintech giant Ant Financial, had seen its stake in Paytm diminish to 13.49% following the earlier deal. With this forthcoming sale, its ownership might be further diminished to a level under 10%.
Antfin's decision to reduce its stake echoes the broader trend observed in the market. In February, China's Alibaba divested its complete stake in Paytm, and Japan's Softbank Group has been progressively reducing its shareholding in Paytm through open market transactions. Presently, Softbank Group's holding stands at 9.18% after its most recent deal.
As the landscape of stakeholders continues to evolve, the dynamics of ownership and strategic partnerships in the fintech realm remain an area of active attention and transformation.
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