Vijay Shekhar Sharma To Acquire 10.3% Stake In Paytm Parent In $628 Mln Deal

One 97 Communications Ltd.’s Founder, Managing Director and Chief Executive Officer Vijay Shekhar Sharma agreed to acquire a 10.3% stake in the Indian digital payments company in a deal valued at $628 million.

Sharma will acquire over 6.53 crore shares in the parent of online fintech platform Paytm through an off-market transfer from Antfin (Netherlands) Holding B.V. via his 100%-owned overseas entity Resilient Asset Management B.V., according to a stock exchange announcement.

The parties said the closing of the transaction will occur at the prevailing market price and based on the stock’s closing price as on 4 August, the value of the 10.3% stake amounts to $628 million.

The stock of One 97 Communications today rose 7% to 850.75 Indian rupees apeice on the BSE.

Under the terms, Resilient will acquire ownership and voting rights of the 10.3% block in the company, according to the statement. In consideration for the transfer of stake, Resilient will issue optionally convertible debentures to Antfin, allowing the seller to retain economic value of its 10.3% stake, it said.

The parties said no cash payment will be made for this acquisition, and neither will any pledge, guarantee, or other value assurance be provided by Sharma, directly or otherwise. Also, there will be no change in the management or control of the company, with no identifiable promoter.

Following the acquisition, Sharma’s shareholding in One 97 Communications (direct and indirect) will increase to 19.42%, while Antfin will cease to be the largest shareholder in the company and its stake will reduce to 13.5%.

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