Antfin Plans Block Deal to Sell 3.6% Stake in Paytm: Report
- ByStartupStory | August 25, 2023
Antfin, the Chinese fintech giant, is reportedly set to sell a 3.6 percent stake or 2.3 crore shares of Indian fintech firm Paytm through a block deal. The floor price for the deal is anticipated to be at a discount of Rs 880.10 per share. As of August 24, Paytm’s shares closed at Rs 904.20 on the BSE, a 0.15 percent decrease.
Earlier, on August 7, it was announced that Vijay Shekhar Sharma, Founder and CEO of One 97 Communications Limited, the parent company of Paytm, had entered an agreement with Antfin. According to this agreement, Sharma’s entity called Resilient Asset Management BV would acquire a 10.3 percent stake in Paytm from Antfin. After this transaction’s completion, Sharma’s stake in Paytm would increase to 19.42 percent, while Antfin’s stake would be reduced to 13.5 percent.
This potential sale by Antfin is part of the trend of Paytm’s major shareholders exiting the company. Earlier this year, Alibaba Group, of which Ant Group is a part, sold its remaining stake in Paytm. Other shareholders, including SoftBank, have also been selling shares over the past months.
The Indian government has expressed concerns about significant Chinese shareholding in Indian companies, including Paytm, due to geopolitical tensions and security considerations. This has led to regulatory scrutiny and delays in approvals for certain transactions involving Chinese entities and Indian firms.
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