Paytm Singapore to Sell its Stock Acquisition Rights in Japanese Payments Firm PayPay for net proceeds of JPY 41.9 billion

One 97 Communications Limited (OCL / Paytm) that owns the brand Paytm, India's leading payments and financial services distribution company and the pioneer of QR, Soundbox and mobile payments, announces that its wholly-owned subsidiary, One97 Communications Singapore Private Limited (Paytm Singapore), has approved sale of Stock Acquisition Rights (SARs) held in PayPay Corporation, Japan (PayPay).

These SARs, acquired by Paytm Singapore in September, 2020 will be sold to a SoftBank Vision Fund 2 entity for net proceeds of JPY 41.9 billion. Through this deal, PayPay is valued at JPY 1.06 trillion and accordingly, PayPay SARs held by Paytm Singapore are valued at net proceeds of JPY 41.9 billion (after netting off the exercise cost of SARs). The transaction is expected to be closed in December 2024 subject to the satisfactory completion of all corporate approvals and customary closing conditions.

Paytm Singapore spokesperson said, "We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. 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 Board of Paytm Singapore has approved the sale of the above-mentioned SARs as it has created significant value for the Company. The SARs sale net proceeds would fortify the consolidated cash reserves of OCL and help drive future business initiatives, focused on maximizing value creation for shareholders.

Source : Equity Bulls

Keywords

One97CommunicationsSingapore Paytm StakeSale SAR PayPayCorporation Japan