Uber Likely Exiting Zomato With Entire 7.8% Stake Put On The Block
Uber is selling its 7.8% stake in Zomato at Rs 48-54/share--implying a 2.8-13.6% discount--to raise nearly Rs 3,000 crore.
Uber Technologies Inc. is likely selling its entire stake in Gurugram-based food delivery platform Zomato Ltd., nearly three years after it took the stake as a result of the sale of Uber Eats to the firm.
An undisclosed seller is listed as selling a 7.8% stake or 61.2 crore shares in Zomato, according to terms of the deal reviewed by BQ Prime. As on June 30, Uber held a 7.78% stake in Zomato, BSE data showed.
That led to shares of Zomato sinking as much as 9.5% in early trade on Wednesday, but the stock has since pared the losses.
The sale is being executed in the price band of Rs 48-54 per share, a 2.8-13.6% discount to the company's closing price of Rs 55.5 apiece on Aug. 2. At the lower end of the price range, the block trade will garner around Rs 2,938.6 crore for the seller.
BofA Securities is the bookrunner for the transaction.
On Jan. 21, 2020, Zomato had formally acquired Uber Eats in India in an all-stock transaction, giving the ride-hailing company a 9.99% stake in Zomato. The holding has since fallen to 7.8%. According to Zomato's IPO papers, the deal was valued at Rs 1,375.9 crore then. Uber received 76,376 compulsory convertible preference shares, which were converted to around 61.2 crore equity shares later.
