Japanese tech giant SoftBank, via its affiliate SVF Growth Singapore Pte on Friday, is likely to sell a 1.1 per cent stake in food delivery giant Zomato through block deals, according to media reports.
Reports further added that the offer price is set around Rs 109.4 to 111.6 per share and the transaction is valued at Rs 1,024 crore. At the end of the September quarter, SoftBank holds about 2.17 per cent stake in the company.
In August this year, SoftBank made a significant move by selling approximately 1.17 per cent of its stake in Zomato through a block deal. This deal amounted to a value of Rs 947 crore. Several investors, including Morgan Stanley, Nomura, Kotak Mahindra MF, Invesco MF, Goldman Sachs, Franklin Templeton MF, Avendus, and Societe Generale, among others, seized this opportunity and acquired stakes in Zomato.
SoftBank’s decision to pare down its stake in Zomato came as the lock-in period for the post-Blinkit deal ended in August. Prior to this, the Japanese investor, through its affiliate, held a 3.35 per cent stake in the company.
Last year, as part of a merger and acquisition agreement with Blinkit, Zomato issued fresh equity shares to all the selling shareholders. This transaction resulted in Zomato negotiating a 12-month lock-in period for these shares, surpassing the standard requirement of six months.
Notably, the majority of these shares are owned by three venture capital firms: SoftBank Sequoia, and Tiger Global.
SoftBank has been reducing its stakes in various companies, aside from Zomato. This month, it partially sold its stake in PB Fintech through a block deal worth Rs 869 crore. In addition, SoftBank offloaded around 2 per cent of its stake in Paytm in July and sold a 2.07 per cent stake in the fintech major through a series of open market transactions in May.