Paytm Chief Executive Officer Vijay Shekhar Sharma will acquire 10.3% stake in the fintech company from Antfin (Netherlands) Holding B.V., becoming its single largest shareholder.
The purchase will be conducted through Netherlands-based Resilient Asset Management BV, in which Sharma owns 100% stake, according to an exchange filing. Antfin, part of the Alibaba Group, will cease to be the largest shareholder in Paytm.
Antfin will be issued optionally convertible debentures by Resilient Asset Management. Shares linked to these debentures were valued at $628 million as of Friday.
No cash payment will be made for this acquisition and neither will any pledge, guarantee, or other value assurance be provided by Sharma, directly or otherwise, the official statement said.
Owing to these debentures, Antfin will continue to hold the economic interest linked to these shares, while the voting rights and ownership of the shares will move to Resilient Asset Management. This arrangement demonstrates Antfin's continued confidence in the business potential of Paytm, the company said.
"As we announce this transfer of ownership, I would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years," Sharma said in the statement.
Paytm remains a professionally managed company with no identifiable promoter. There is no nominee of Antfin on the board of Paytm, the company said.
Through this purchase, Sharma's direct and indirect shareholding in Paytm will increase to 19.42% and Antfin's shareholding would decline to 13.5%. Accordingly, post this agreement, there will be no change in the management or control of Paytm.
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