Chinese e-commerce giant Alibaba, which owns about 13% stake in food delivery platform Zomato, will sell shares worth $200 million through a block deal on Wednesday. The deal will be through two of its subsidiaries — Ant Financial and Alipay.
Post the transaction, Alibaba’s stake in Zomato will come down to about 10%.
The block deal is said to be at a discount of about 5-6% to Zomato‘s Tuesday’s closing price of Rs 63.55 at the National Stock Exchange. Investment bank Morgan Stanley would be the broker to the deal.
Alibaba’s partial exit comes at a time when Zomato has seen a series of senior-level exits. The company has also initiated layoffs as it plans to shrink the workforce by around 4%.
Also Read: Zomato to cut staff by 3%
Alibaba has become the latest investor to sell Zomato shares in bulk since the lock-in period of one year for around 6,130 million shares, or 78% of the company’s stock, ended on July 23. In August, some of the biggest shareholders, including Sequoia Capital India, Tiger Global Management, Uber and Delivery Hero, pared their stakes either through block deals or open market operations.