Paytm Founder Vijay Shekhar Sharma Acquires 10.30% Stake in Company to Reduce Exposure to Ant Financial
Vijay Shekhar Sharma, the founder and chief executive of Paytm, has entered into a deal with Ant Financial to acquire a 10.30% stake in the Indian financial services firm. The move is seen as an effort to reduce Paytm’s exposure to the Chinese company. Resilient Asset Management, a firm fully owned by Sharma, will acquire the stake from Ant Financial.
The deal is being executed at Paytm’s share closing price on August 04, valuing the 10.3% stake at $628 million. Neither Sharma nor Resilient will make any cash payment in the off-market deal. Paytm’s shares jumped over 6.5% on the news.
Following the transaction, Sharma’s stake in Paytm will increase to 19.42%, while Ant Financial’s shareholding will decrease to 13.5%, according to Paytm. This move comes after a turnaround at Paytm, which had a lackluster listing but has significantly improved its finances in recent quarters.
Sharma’s Resilient will issue optionally convertible debentures to Ant Financial, allowing the Chinese giant to “retain economic value of the 10.30% stake,” Paytm said. However, Ant Financial will not have a representation on Paytm’s board.
In a prepared statement, Sharma expressed his gratitude to Ant Financial for their support and partnership over the past several years. He also highlighted Paytm’s role in championing made-in-India financial innovation and revolutionizing mobile payments in the country.
This deal marks a strategic move by Paytm to reduce its reliance on Ant Financial and strengthen its position in the Indian financial services market.
How will Vijay Shekhar Sharma’s acquisition of a 10.30% stake in Paytm from Ant Financial impact the company’s exposure to the latter?
Paytm Founder Vijay Shekhar Sharma has made a significant move to reduce the company’s exposure to Ant Financial by acquiring a 10.30% stake in his Indian financial services firm. In an off-market deal, Resilient Asset Management, a firm fully owned by Sharma, will acquire the stake from Ant Financial. The deal, valued at $628 million, will see Sharma’s stake in Paytm increase to 19.42% while Ant Financial’s shareholding will decrease to 13.5%. This move comes after a turnaround for Paytm, which has significantly improved its finances in recent quarters. By reducing reliance on Ant Financial, Paytm aims to strengthen its position in the Indian financial services market.
Wow, that’s a smart move by Vijay Shekhar Sharma! It’s great to see his dedication and commitment to the growth of Paytm.