Paytm’s top boss Vijay Shekhar Sharma has struck a deal with Ant Financial to buy its 10.30% stake in One97 Communications. After the transaction, Ant will cease to be the fintech payment platform’s largest shareholder.
Sharma, who is the founder and CEO of One97 Communications, will purchase 10.30% stake in Paytm from Antfin (Netherlands) Holding BV through its 100% owned foreign entity – Resilient Asset Management BV, the company said on Monday.
Under the agreement, the OCD will be issued by Resilient Asset Management BV in consideration of the transfer to Antfin and to maintain economic value, the filing states. The new ownership structure could benefit the company, Paytm also claims.
After the close of this transaction, Sharma’s shareholding in Paytm – both direct and indirect – will increase to 19.42%, while Antfin’s shareholding will fall to 13.5%.
Resilient Asset Management BV is a 100% owned foreign entity owned by Sharma.
The filing said the closing of the transaction will happen soon at the prevailing market price. Based on the closing price as of Friday, August 4, 2023, the 10.30% stake is worth $628 million. The deal will give elastic ownership and voting rights to the 10.30% block.
No cash will be paid for this acquisition and no undertaking, guarantee or other assurance of value will be given directly or otherwise by Sharma, the filing said.
The deal will also not change Paytm’s management control and Sharma will continue as managing director and CEO to lead the current board.
Commenting on the agreement, Sharma said, “I am proud of Paytm’s role as a true champion of made-in-India financial innovation and our achievements in revolutionizing mobile payments and contributing to formal financial services inclusion in the country. As we announce this transfer of ownership, I would like to express my sincere gratitude to Ants for their unwavering support and partnership over the past few years. “
