Vijay Shekhar Sharma, Founder and CEO of One 97 Communications Limited (“Paytm”), and Antfin (Netherlands) Holding B.V. (“Antfin”) announced execution of an agreement whereby an overseas entity 100% owned by Mr. Sharma will acquire 10.30% stake in Paytm from Antfin through an off-market transfer.
On closing of this transaction, Mr. Sharma’s shareholding in Paytm (direct and indirect) will increase to 19.42%, whereas Antfin’s shareholding will reduce to 13.5%. The acquisition will be made by Mr. Sharma’s 100% owned overseas entity, Resilient Asset Management B.V. (“Resilient”) based in the Netherlands. 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.
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