Uber is likely to sell a 7.8 percent stake in food delivery firm Zomato through a $373 million block deal on Wednesday, according to a source familiar with the matter and a document seen by Reuters. The offer size of $373 million was based on the lower end of a Rs. 48 - Rs. 54 price range set for the block deal, the document showed.
BofA Securities is the sole bookrunner for the deal.
On Monday, an internal company memo seen by Reuters revealed
that the Indian food delivery company backed by China's Ant Group, is
considering reorganising its management so that each of its individual businesses
would have its own CEO, while the parent company would be renamed
"Eternal".
Zomato's CEO Deepinder Goyal in the memo stated that the
company was now not only running the Zomato food delivery business but also
other large businesses.
Goyal said these included Zomato's proposed purchase of
grocery-delivery startup Blinkit, kitchen and food ingredients supply business
Hyperpure, and Feeding India, a not-for-profit firm that aims to reduce hunger
in India's poor communities.
"We are transitioning from a company where I was the
CEO to a place where we will have multiple CEOs running each of our
businesses...all acting as peers to each other," Goyal said in the memo.
Zomato's shares plunged to a record low last week as a
one-year share lock-in period for promoters, employees and other investors
expired.
Goyal also said in the memo that "Eternal", the
proposed name for the parent organisation, would remain an "internal name
for now."
Zomato on Monday posted a smaller quarterly loss, helped by
an increase in orders for restaurant meals on its platform.
The company's net loss stood at Rs. 1.86 billion for the
three months ended June 30, compared with a loss of Rs. 3.56 billion a year
ago, the company said in a regulatory filing. © Reuters
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