Alibaba to sell 13% of shares it owns in Zomato on Nov 30

Alibaba: Through two of its companies, Alibaba, which owns a roughly 13% investment in restaurant aggregator and meal delivery company Zomato, will sell $200 million worth of shares in a block deal on November 30.

According to the article, which cited sources, Ant Financial and Alipay would reduce their ownership of Zomato to roughly 10%. According to the article, the block deal will allegedly occur at a discount of between 5 and 6 percent. Morgan Stanley, an investment bank, would act as the deal’s broker.

Alibaba’s partial withdrawal occurs as Zomato has recently experienced a slew of senior-level departures. The corporation has also started making layoffs in order to reduce its personnel by 4%. Even though the company has experienced rapid revenue growth in recent quarters, Zomato’s share price has dropped by more than 55% this year.

Since the one-year lock-in period for over 613 crore shares, or 78 percent of the company’s equity, ended on July 23, Alibaba has become the most recent investor to sell Zomato shares in large quantities.

Some of the largest owners in August reduced their holdings through block deals or open market transactions, including Sequoia Capital India, Tiger Global Management, Uber, and Delivery Hero.

By selling 6.7 crore shares between September 6, 2021 and October 14, 2021 and 10.5 crore shares between June 27, 2022 and August 25, 2022 through its two investment vehicles, Sequoia Capital reduced its stake from over 6.41 percent to 4.4 percent in the last week of August, Zomato reported in a stock exchange filing.

Delivery Hero, which owned a roughly 1.6 percent ownership in the unicorn of food delivery, sold all of its $60 million-worth shares on the open market in July.

Tiger Global effectively sold 18 crore shares in the same month. Additionally, the taxi aggregator Uber sold its whole 7.78 percent interest in the Gurugram-based company, signalling its withdrawal from the dominant Indian food delivery company.

In July, the New York-based venture capital firm Moore Strategic Ventures sold all 4.25 crore of its shares in a block transaction for Rs 44 each, incurring a loss of Rs 4 crore. Zomato’s stock price decreased 1.63 percent to Rs. 63.35 at the closing of trading.

The post Alibaba to sell 13% of shares it owns in Zomato on Nov 30 appeared first on News24 English.

, International, ,

Post a Comment

Previous Post Next Post