Zomato board is likely to approve Blinkit acquisition on Friday
- ByStartupStory | June 22, 2022
Zomato, a leader in the foodtech industry, informed the Bombay Stock Exchange in a regulatory filing that its board will meet on June 24 to examine a potential acquisition transaction by the business. Providing approval for Zomato’s acquisition of fast-growing firm Blinkit is reportedly the topic of debate (formerly Grofers).
According to Regulation 29 of the Listing Regulations, as amended, Zomato Limited (“the Company”) has scheduled a board meeting for Friday, June 24, 2022, to discuss a potential acquisition transaction. The payment for the transaction may be made in the form of equity shares of the company through a preferential issue, the food delivery giant said in the filing.
According to the proposal, Blinkit’s stockholders would own slightly less than 10% of Zomato. The largest investor in Blinkit, SoftBank Vision Fund, will hold approximately 4% of the foodtech business. According to sources aware of the matter, Blinkit investors may be required to hold Zomato shares for a minimum of six months.
Zomato previously declared that it had provided Blinkit with a loan worth up to $150 million. The creator of Zomato, Deepinder Goyal, asserted that Blinkit received some of this money on its first investor call since becoming public last month and that the other funds will be granted based on the company’s need or lack thereof.
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