Paytm’s parent company One97 Communications saw its shares rise in value after a report revealed that Jack Ma’s Ant Group is looking to slash its stake in the fintech giant.
What Happened? Per a Bloomberg report, Ant Group is considering the sale of some of its shares in the operator of Indian financial technology firm Paytm to keep its holding within a required threshold, according to people familiar with the matter.
The group which owns the world’s largest mobile payment platform, Alipay, has been discussing options to reduce its stake in One 97 Communications Ltd. after its share percentage increased passively due to share buybacks.
That said, talks are so far preliminary and the details of the potential stake sale could change depending on regulatory and pricing concerns, stated sources in the know.
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The deliberations follow Ant affiliate Alibaba Group Holding Ltd.'s sale of its stake in Paytm, as the e-commerce giant pared back investments in India amid growing geopolitical tensions.
According to a separate Bloomberg report, telecom giant Bharti Group was interested in buying a stake in Paytm but a follow update on Monday per MoneyControl reveals that talks between the two companies have since collapsed.
Bharti Enterprises led by founder Sunil Mittal was trying to package a deal which saw Airtel Payments Bank folded into Paytm Payments Bank in a stocks deal while buying off more Paytm shares from other holders.
Price Action: One97 Communications Ltd. shares were trading 2% higher at ₹636 on Monday, soon after markets opened for trading.
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