For $628 million, Vijay Shekhar Sharma will purchase a 10.3% share in Paytm from Antfin

 For $628 million, Vijay Shekhar Sharma will purchase a 10.3% share in Paytm from Antfin

After the deal, Sharma's ownership of the firm will increase to 19.42%, and Antfin will no longer be Paytm's largest stakeholder.

One97 Communications, the parent company of Paytm, announced in a filing on Monday that Vijay Shekhar Sharma, the business's founder and CEO, has agreed to buy a 10.3% share in the fintech company from Antfin (Netherlands) Holding BV share.

Through Sharma's wholly owned Netherlands-based company Resilient Asset Management BV, the acquisition will be completed off-market. After the deal, Sharma's ownership in the business will increase to 19.42%, and Antfin will no longer be Paytm's largest stakeholder.

According to the company's stock's closing price on August 4, the deal will be worth $628 million.

According to the written agreement between the parties, Resilient will become the owner and holder of the voting rights for the 10.30% block. Resilient will provide Antfin with optionally convertible debentures (OCDs) as payment for the 10.30% interest, allowing Antfin to keep the economic value of the holding and expressing Antfin's continuing belief in the potential of the company. As a result, Sharma will not give any pledges, guarantees, or other value assurances for this transaction, either directly or indirectly, the business stated in the statement.

I want to sincerely thank Ant for their continuous support and collaboration over the past few years as we announce this change in ownership," Sharma added.

Sharma will continue to serve as the managing director and CEO of the firm after the transaction, and neither the management nor the control of Paytm will change. Additionally, the current board will remain in place.

Paytm is still a well-run business that has an anonymous promoter. Additionally, Paytm's Board does not have any Antfin nominees, according to the business.