Biznextindia : Vijay Shekhar Sharma, the founder and CEO of Paytm, has agreed to acquire a 10.3% stake in the company from Antfin (Antfin (Netherlands) Holding B.V.). The deal, which will be made through an off-market transfer, will see Sharma’s total stake in Paytm increase to 19.42%. Ant Financial’s stake in Paytm will fall to 13.5% as a result of the sale. The acquisition will be made by Sharma’s 100% owned overseas entity, Resilient Asset Management B.V., which is based in the Netherlands. The deal is expected to close in the coming months.
Closing of the transaction will occur shortly at the prevailing market price. Based on the closing price as on August 04, 2023, the value of the 10.30% stake amounts to $628 million. As per the agreement executed between the parties, Resilient will acquire ownership, and voting rights, of the 10.30% block. In consideration for the acquisition of the 10.30% stake, Resilient will issue Optionally Convertible Debentures (OCDs) to Antfin, which in turn will allow Antfin to retain economic value of the 10.30% stake, demonstrating Antfin’s continued confidence in the business potential. Accordingly, no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Mr Sharma, directly or otherwise. Pursuant to this transaction, there would be no change in the management or control of Paytm, since Mr Sharma would continue as Managing Director and CEO, and the existing Board would continue as is. Paytm remains a professionally managed company with no identifiable promoter. Further, there is no nominee of Antfin on the Board of Paytm. Vijay Shekhar 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 Ant for their unwavering support and partnership over the past several years.