Shares of Zomato fell up to 6.8 percent on Wednesday, in their biggest drop in more than a week, a day after reports said that Uber Technologies planned to sell its entire stake in the Indian food delivery firm.
Uber is the likely seller of a 7.8 percent stake in Zomato
being disposed of via a $373 million block deal, a source with direct knowledge
of the matter told Reuters on Tuesday.
The offer size of 612 million shares worth $373 million is
based on the lower end of a price range of Rs. 48 - Rs. 54 set for the block
deal, according to a term sheet seen by Reuters.
Uber and Zomato did not immediately respond to Reuters
requests for comment.
BofA Securities is the sole bookrunner for the deal. The
term sheet did not name the potential seller.
About 12.1 million shares were exchanged in a block deal
priced at Rs. 52.5 in pre-open trade, according to Refinitiv Eikon data.
Zomato shares were last down 1.5 percent at Rs. 54.7, with
more than 232 million shares traded, twice their 30-day average.
On Monday, an internal company memo of Zomato seen by
Reuters revealed that the Indian food delivery company backed by China's Ant
Group is considering to revise its management in a way that each of its
individual businesses would have its own CEO. The Indian food delivery
company's memo also mentioned about changing the parent company name to
"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. ©
Reuters
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