According to a filing with the National Stock Exchange, the Zomato board of directors will meet on June 24 and probably approve the acquisition of Blinkit; a startup focused on rapid commerce. Blinkit was not mentioned in the filing though.
According to a filing with the National Stock Exchange, the Zomato board of directors will meet on June 24 and probably approve the acquisition of Blinkit; a startup focused on rapid commerce. Blinkit was not mentioned in the filing though. According to Regulation 29 of the Listing Regulations, Zomato Limited ("the Company") has scheduled a board meeting for Friday, June 24, 2022, to discuss a potential acquisition transaction. The payment for the transaction may be made in the form of equity shares of the company through a preferential issue, the food delivery giant said in the filing.
Zomato will acquire Blinkit, formerly known as Grofers, for shares. According to the proposal, Blinkit's stockholders would own slightly less than 10% of Zomato. The largest investor in Blinkit, SoftBank Vision Fund, will hold approximately 4% of the food tech business. People who know the matter claim that Blinkit investors may be obliged to keep Zomato shares for at least six months.
According to an earlier article, one Zomato share will likely be exchanged for every 10 Blinkit shares. The prospect of a merger has increased since Zomato first invested in Blinkit last year. Zomato previously declared that it had provided Blinkit with a loan worth up to $150 million. The creator of Zomato, Deepinder Goyal, asserted that Blinkit received some of this money on its first investor call since becoming public last month and that the other funds will be granted based on the company's need or lack thereof. Zomato acquired a 10% stake in the Gurugram-based rapid commerce business last year after investing $100 million.
On March 15, it was anticipated that the deal would value Blinkit at somewhere between $700 and $800 million based on Zomato's market capitalization. That was less than Blinkit's initial estimated value, which was slightly more than $1 billion.
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