Info Edge gains 7% on stake sale buzz in Zomato, ahead of results

Shares of Info Edge India rose 7.5 percent in the early trade on Friday as the company to divest its stake in Zomato Media for USD 50 million.

“Taking into consideration recommendation of the audit committee, the company in its meeting held on Feb 1 has accorded its approval, to allow divestment of 32,629 equity shares of Zomato Media,” company said in release.

The said divestment is subject to shareholders & other requisite approvals, if applicable.

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“The company is going to sell 6.66 percent stake in Zomato to Ant financial either directly or through its wholly owned subsidiary Naukri Internet Services, as may be deemed fit in the best interests of the company, by way of sale, transfer, assignment or disposal and to execute such agreements and other documents as may be required for the purpose of or in relation to, the divestment,” it added.

Further, as part of the deal, Zomato will also raise USD 150 million from Ant, previously known as Alipay Financial Services.

After the deal closes by April 15, company’s stake in Zomato would decline to 30.9 percent from 44.74 percent currently.

The meeting of the board of directors of the company to be held on February 02 to consider and approve the un-audited financial results of the company for the quarter & nine months ended December 31, 2017.

The board will also consider the declaration of second interim dividend, for the financial year 2017-2018 in the said meeting.

Info Edge also owns online real estate portal 99acres and matrimonial website Jeevansathi.com.

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At 09:55 hrs Info Edge India was quoting at Rs 1,368, up Rs 36.65, or 2.75 percent.

Posted by Rakesh Patil