Paytm Share Purchase
I’m wondering where did VSS got the cash to buy 10% of PayTM. Some rough estimates suggest it would be at least $500 million. That’s a lot of cash or is my rough math wrong. Did he do something like Ritesh/Oyo buyback which was peculiar or could it be at a discount. I’m wondering if anyone has any thoughts or idea if what could happen.
AlwaysOnline
Stealth
a year ago
https://www.cnbctv18.com/business/companies/paytm-share-price-promoter-vijay-shekhar-sharma-to-buyback-stake-from-antfin-at-628-million-17449221.htm
AlwaysOnline
Stealth
a year ago
I was reading an article how it was executed
Basically VSS set up a company in Netherlands and then Ant financial gave a loan to the company by which he bought the shares and put them as a collateral.
The company is going to pay undisclosed amount of interest which can be even close to zero
So why this?
Ant owns the stock indirectly, VSS gets the media PR as well as they can show to govt that the Chinese stake is reduced especially since they are trying for banking license.
FunnyPlanula
Stealth
a year ago
Very poor deal financially. PR focussed deals always hurt
