The fintech business One97 Communications, which owns the Paytm brand, said that its Singapore-based subsidiary has given its approval for SoftBank Vision Fund 2 to purchase its stock acquisition rights in Japan's PayPay for Rs 2,364 crore.
On Saturday, the decision was revealed in a regulatory filing.Paytm Collaborates with Yahoo Japan and SoftBank to Provide PayPay Services
In order to supply technical services to PayPay, Paytm and Paytm Singapore entered into a deal with Softbank Corp, Softbank Group Corp, and Yahoo Japan Corporation, a Japanese digital wallet company.
Purchasing a Share in PayPay
In exchange for the services, Paytm Singapore purchased Stock Acquisition Rights, which are convertible into 1,59,012 shares, representing a fully diluted 7.2% ownership in PayPay.
Board Authorization for Stake Sale
The company stated in the filing that One97 Communications Singapore Private Limited notified it at 12:49 p.m. (IST) on December 6, 2024, that its Board of Directors had authorized the sale of all its stock acquisition rights in PayPay Corporation, Japan, to SoftBank Vision Fund 2 entity for a net proceeds of JPY 41.9 billion, or Rs 2,364 crore, at its meeting on that date.
According to Paytm, the transaction should be finished by December 2024.
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