PayPay valued at USD 7bn
The deal finally was confirmed on Saturday: Paytm’s Singapore arm will sell its stake — in the form of Stock Acquisition Rights (SARs) —…
The deal finally was confirmed on Saturday: Paytm’s Singapore arm will sell its stake — in the form of Stock Acquisition Rights (SARs) — in Japan’s PayPay for around USD 280m.
Through this deal, PayPay is valued at JPY 1.06 trillion (USD 7bn) 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.
A 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 will fortify the consolidated cash reserves of One 97 Communications (Paytm’s corporate entity and brand owner) and help drive future business initiatives, focused on maximizing value creation for shareholders.
Paytm is India’s leading mobile payments and financial services distribution company. Pioneer of the mobile QR payments revolution in India, Paytm builds technologies that help small businesses with payments and commerce. Paytm’s mission is to serve half a billion Indians and bring them to the mainstream economy with the help of technology.
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