Zomato board likely to sign acquisition of Blinkit on June 17: Report
It has also been reported that Zomato may not require Competition Commission of India’s (CCI) nod to complete the transaction.
Image courtesy: Wikipedia
Advertisement
According to a report by MoneyControl, the Zomato board will likely meet on June 17 to complete the acquisition of quick commerce company, Blinkit.
Earlier the value of the deal was worth $700 million but is expected to be cut down as it involves a stock swap of shares in the ratio of 1:10. This means that Zomato will get 10 shares of Blinkit for every 1 of its shares. It has also been reported that Zomato may not require Competition Commission of India’s (CCI) nod to complete the transaction.
Blinkit which was formerly known as Grofers had received a loan of $150 million from food delivery major Zomato in March of the year. “The interest rate for the loan will be 12 percent per annum or higher with a tenor of not more than one year. This loan will support the capital requirements of GIPL in the near term and is in line with our stated intent to invest $400 million cash in quick commerce in India over the next two years,” Zomato stated in its filing.
Advertisement
The total loan amount has not yet been disbursed, Zomato has further said that it will provide the pending sum as per the company’s need. On Monday, the shares of Zomato closed 3.40% lower at Rs 69.70/piece on the National Stock Exchange (NSE).