SoftBank To Sell One-third Of Its Stake Via Block Deal

Japan-based SoftBank is to sell its stake of One97 Communication, owner of Paytm, worth $200 billion through a block deal on Thursday. 

BofA Securities, Bank of America, is the deal’s banker. SoftBank has offered to sell shares in the price band of Rs 555-601 single piece. At the lower end of the band, it is a 7.7% discount to the closing price of Rs. 601.3. When completed, the sale will fetch SoftBank at least Rs. 1,628.9 crore or approximately $2 billion. 

SoftBank, on September 30, bought a 17.45 per cent stake in the fintech firm through SVF India holdings, which stake is likely to fall to 12.9 per cent, reports said. 

The multinational conglomerate had invested 1.6 billion in Paytm and sold a partial stake worth $220-250 million in the Initial Public Offering (IPO) last year. SoftBank’s investment in the fintech major (Paytm) is under loss, as the stock has fixed more than 72% from its issue price of Rs 2,150. 

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Similar things have been seen in other tech firms. Investors like Uber and Tiger Global liquidated part of their holdings in Zomato when its IPO lock-in period expired last year. 

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