(Aug 19): Resilient Asset Management BV, controlled by Paytm founder Vijay Shekhar Sharma, on Tuesday sold a 3% stake in the Indian fintech for US$309 million (RM1.26 billion), according to a person familiar with the matter, who asked not to be identified.

The proceeds from the transaction will flow to Ant Group Co under an agreement reached three years ago, according to an exchange filing Paytm made late on Monday.

The stake is part of the 10.3% interest the Netherlands-based Resilient acquired from Jack Ma-backed Ant Group in August 2023 in exchange for convertible securities rather than cash. The arrangement allows the Chinese fintech to retain the economic benefit from the shares.

On Tuesday, about 19.2 million shares, or 2.99% of the company’s equity changed hands in three pre-market block trades, exchange data showed. The deal took place at 1,535.10 rupees per share, generating proceeds of 29.5 billion rupees (US$309 million or RM1.26 billion), according to Bloomberg calculations. The stock fell 2.2% in a third day of losses.

Representatives of Paytm and Ant Group didn’t respond to emails seeking comments.

The deal follows a surge of about 20% in Paytm’s shares this year. The rally received a boost after India earlier this month proposed easing rules on merchant fees for digital payments, while the company’s payments and financial services businesses have continued to perform better.

Goldman Sachs Group Inc was the sole manager, the terms showed. 

Later on Tuesday, exchange data showed domestic institutions, including SBI Mutual Fund, HDFC Mutual Fund were among buyers of Paytm shares while Integrated Core Strategies (Asia) Pte Ltd and MY Asian Opportunities Master Fund also acquired the firm’s shares via block trades.

Uploaded by Tham Yek Lee