Zomato board likely to approve Blinkit acquisition on Friday

The board of directors will meet on June 24 and will likely approve the acquisition of Blinkit, a quick commerce startup, according to a filing with the National Stock Exchange. The filing, however, did not name Blinkit.

“Pursuant to Regulation 29 of Listing Regulations, as amended, this is to inform you that a meeting of the board of directors of Zomato Limited (“the Company”) is scheduled to be held on Friday, June 24, 2022, to discuss a potential acquisition transaction by the Company, the consideration for which may be discharged through issuance of equity shares of the Company by way of a preferential issue,” the food delivery giant said in the filing.

Zomato will pay in its shares for Blinkit, formerly Grofers,
ET reported earlier.

The plan calls for Blinkit’s stockholders to receive a little less than a 10% ownership in Zomato. SoftBank Vision Fund, Blinkit’s largest investor, will receive a nearly 4% ownership in the foodtech startup. According to persons acquainted with the situation who spoke to ET, Blinkit investors may be required to hold Zomato shares for a minimum of six months.

Last year, Zomato
invested $100 million in the Gurugram-based quick commerce startup, acquiring a 10% share.

Based on Zomato’s market capitalization at the time,
ET reported on March 15 that the deal was expected to value Blinkit at around $700-800 million. That was less than the previous valuation of Blinkit, which was just over $1 billion.

Discover the stories of your interest



According to an earlier report by ET, Zomato will likely exchange one share for every ten Blinkit shares. Since Zomato initially invested in Blinkit last year, the possibility of a merger has been discussed.

Zomato announced earlier this year that it has given Blinkit a
loan of up to $150 million. Zomato founder Deepinder Goyal claimed that a portion of this money had been delivered to Blinkit during its first investor call since going public last month, and that the rest amount will be released depending on whether it needed it or not.

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.

For all the latest Technology News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.