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Vijay Shekhar Sharma-led Paytm said that its Singapore unit, Paytm Singapore, has approved the sale of Stock Acquisition Rights (SARs) held in Japan-based PayPay Corporation.
These SARs will be sold to a SoftBank Vision Fund 2 entity for JPY 41.9 billion or Rs 2,364 crore, the company said in an exchange filing.
Through this deal, PayPay is valued at JPY 1.06 trillion, and accordingly, PayPay SARs held by Paytm Singapore are valued at net proceeds of JPY 41.9 billion (after netting off the exercise cost of SARs).
The transaction is expected to be closed in December 2024 subject to the satisfactory completion of all corporate approvals and customary closing conditions.
Leadership comments
"We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. We remain fully committed and will continue to support PayPay's product and technology innovations in future. We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan," Paytm Singapore spokesperson said.
The SARs sale net proceeds would fortify the consolidated cash reserves of OCL and help drive future business initiatives, focused on maximizing value creation for shareholders, the company said.
In July 2018, Paytm partnered with PayPay Corporation to expand its services in the Japanese market.
Earlier this year, Paytm sold Paytm Insider, its entertainment ticketing business, to Deepinder Goyal-led food delivery giant Zomato for Rs 2,048 crore.