Ant Group's Alipay to exit Zomato

Alipay's proposed share sale follows the sale of 1.1% stake for ₹1,200 crore by Softbank Group last month

- Sneha Shah,Ranjani Raghavan

Ant Group’s payments platform Alipay is set to offload shares of Zomato Ltd in a $395 million block deal on Wednesday, according to a term sheet reviewed by Mint.

Alipay’s share sale follows a partial stake sale by Softbank Group in the food delivery aggregator last month where the Japanese investor sold 1.1% stake for ₹1,200 crore. 

Alipay is selling 296 million shares in the online food delivery company and expects to raise ₹3,290 crore or ($395 million).

Shares will be offloaded at ₹111.28 apiece, a 2.2% discount to the closing price of ₹113.80 apiece on Tuesday. 

Bofa Securities India Ltd and Morgan Stanley are arranging the trade.

According to exchanges, over the past one year, Deepinder Goyal-founded Zomato’s share price has risen by 80% from ₹62.05 to ₹113.8 now.

Alipay invested $360 million in 2018, according to an Inc42 report. Alibaba Group has also separately invested through Ant Financial in Zomato.