In the face of tensions between Asian neighbours and a hardening competitive environment, Chinese fintech Giant Ant Group plans to sell its 30 per cent stake in India’s digital payment processors.
There have not been financial information on the proposed deal and Ant, a credit sponsored by Alibaba still hasn’t started a structured distribution process, four people told Reuters. Four of them have not done this.
During its recent private fundraising round a year ago, Paytm, funded, among other items, by SoftBank was priced at around $16 billion (around RR 1,18,000 crores). Ant’s interest in the Indian corporation is worth nearly $4.8 billion (roughly Rs. 35,400 crores).
The details were wrong, both companies said. A spokesperson for Paytm said No negotiation or arrangements have ever taken place with any of the major shareholders on the sale of their shares
A potential withdrawal from Paytm will represent a reversal of China’s hot-heel stock last month, which was the world’s highest, owing to the dramatic suspension of its $37 billion (approx. Rs. 2.73,000 crores).
Their goal to become a major payment pioneer also will be a step backwards. Sources said in October that several e-wallet companies in the Overseas affiliates were cutting their financial assistance through the company
Ant was led by a weakening diplomatic relationship between India and China over recent months to consider the decline of its stake in Paytm, says the people who refused to be called confidential as the discussions were.
Nation relations are nadir, with soldiers locked on the West Himalayan frontier facing off for months in June, after a clash where 20 Indian soldiers had been wounded.
After the dispute, India has tightened investment laws from China and barred scores of smartphone applications in China, including tech giants Tencent, Alibaba and ByteDance. Late last month, it blocked 43 other games.
“There is a growing realisation within Ant management that it would not be able to raise its stake in the company,” said one source, adding senior managers at Ant recently to the notion.
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