Ant Group to Sell Remaining Ownership in Paytm (Indian Digital Payment Platform)
Ant Group Exits Paytm Completely with Remaining Equity Sale
Ant Group, an affiliate of Alibaba Group, is set to fully exit Paytm, India's leading digital payments company, following a series of stake sales over the past two years.
The Chinese fintech giant is selling its remaining 5.84% equity stake in Paytm, with a floor price of 1,020 rupees per share. This sale, valued at approximately Rs 3,800–3,980 crore ($433.72 million), marks Ant Group's complete exit from One97 Communications, Paytm's parent company.
This decision seems to be part of Ant Group’s strategic move to gradually wind down its investment in Paytm after the latter's public listing in 2021. Regulatory challenges and shifting business priorities in the fintech sector may have influenced this decision [1][3].
The sale is being led by Goldman Sachs India Securities and Citigroup Global Markets India, but the details about the banks managing the sale of Ant Group's remaining equity stake are yet to be disclosed [2][5].
Notable entities like Warren Buffett's Berkshire Hathaway and Japan's SoftBank Group have already exited their stakes in Paytm, according to exchange data [4].
It is worth noting that Ant Group also sold a 10.3% stake in Paytm in August 2023, but the details about this sale and the banks involved are not included in this report [6].
Both Paytm and Ant Group did not respond to Reuters' requests for comment regarding the sales mentioned in this article.
The exact timeline for the sale of Ant Group's remaining equity stake in Paytm is not clear from the available information. However, this significant move marks a significant chapter in the evolution of India's digital payments landscape.
[1] Reuters: Ant Group to sell remaining stake in Paytm - sources [2] Bloomberg: Ant Group to Sell Rest of Paytm Stake to Exit Indian Fintech [3] CNBC: Ant Group to sell remaining stake in Paytm, marking complete exit [4] ET Now: SoftBank, Berkshire Hathaway exit Paytm [5] Livemint: Ant Group to sell remaining stake in Paytm [6] TechCrunch: Ant Group sells 10.3% stake in Paytm in August 2023
The Ant Group, having sold its initial stake in 2023, is now finalizing the sale of its remaining 5.84% equity in Paytm, potentially marking the conclusion of its business investments in the Indian digital payments sector. This transition signifies a significant shift in technology-focused finance and investing strategies for Ant Group.
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