Antfin, the Alibaba group firm, is likely to sell a 3.6 per cent stake in One97 Communications, the parent of Paytm, in block deals on Friday.
A CNBC TV-18 report said that AntFin has set the floor price for the sale at Rs 880 per share, which is a 2.67 per cent discount to Paytm’s closing price of Rs 904.20 on the BSE. Citi has been appointed to execute the deal, which is expected to yield $243 million.
The development comes days after the company announced that founder Vijay Shekhar Sharma will acquire a 10.30 per cent stake in the company from Antfin in a no-cash deal that will make him its largest shareholder.
According to the terms of the deal, Sharma will purchase the stake from Antfin through his 100 per cent owned overseas entity Resilient Asset Management BV.
Resilient Asset will issue optionally convertible debentures (OCDs) to Antfin which in turn will allow the latter to retain economic value of the 10.30 per cent stake. This was seen as demonstrating Antfin’s continued confidence in the company.
Paytm had said that following the transaction, there would be no change in the management or control of the company as Sharma would continue as managing director and CEO, and the existing board would continue as it is, even as there is no nominee of Antfin on the board of Paytm.