Paytm's wholly-owned subsidiary, One97 Communications Singapore Pvt Ltd (Paytm Singapore), has announced the sale of its Stock Acquisition Rights (SARs) in PayPay Corporation, Japan, to SoftBank Vision Fund 2 for net proceeds of JPY 41.9 billion (approximately Rs 2,364 crore).
Moneycontrol was the first to report on December 6 that Paytm is close to finalising a $250 million (approximately Rs 2,000 crore) deal to sell its stake in Japan’s digital payments firm PayPay Corporation to SoftBank Group.
The transaction, expected to be completed by December 2024, is contingent upon corporate approvals, execution of transaction documents, and customary closing conditions.
Proceeds from this sale will be used to strengthen Paytm's consolidated cash reserves, supporting future initiatives aimed at creating shareholder value.
Also Read | Paytm board approves PayPay stake sale
Paytm Singapore had acquired the SARs in September 2020. Following this sale, PayPay is valued at JPY 1.06 trillion, and the SARs held by Paytm Singapore will yield net proceeds of JPY 41.9 billion after deducting the exercise costs.
Despite the sale, Paytm Group will continue its partnership with PayPay, supporting the Japanese payments firm with ongoing technology and product innovations. "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," the spokesperson of Paytm Singapore said in an exchange filing on December 7.
Paytm is a pioneer of mobile payments in India, providing financial services and technology to businesses and consumers across the country. On December 6, shares of the Rs 62,171.9 crore m-cap company closed 2 percent higher at Rs 975.35.
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