Uber Exits Zomato, Sells 7.8% Stake For $392 Million
Uber Eats, which Zomato acquired for the stock that is now being sold, may not have been successful in India
Photo Credit : Shutterstock,
Uber Technologies on Wednesday sold its 7.8 per cent stake in Indian food delivery firm Zomato for $392 million via a block trade on local exchanges, two sources familiar with the matter told Reuters.
The deal was executed at 50.44 rupees per share, they said. Zomato and Uber did not immediately respond to requests for comment.
Shares of Zomato Ltd fell as much as 9.6 per cent to 50.25 rupees on India's Bombay Stock Exchange (BSE). The stock cut some losses later and was trading down 5.7 per cent by 0634 GMT. On Tuesday, Zomato's stock had closed at 55.6 rupees on BSE.
Reuters reported on Tuesday the offer size of the block deal was set to be 612 million shares, according to its term sheet, which did not disclose the seller. read more
As per Reuters calculations, the stake sale by Uber was worth 30.87 billion rupees ($392 million).
Uber on Tuesday reported a net loss of $2.6 billion for second quarter of 2022, of which $1.7 billion was related to its equity investments, including its Zomato stake.
Uber Eats, which Zomato acquired for the stock that is now being sold, may not have been successful in India. But the stock provides a cushion to Uber’s continuing losses in India.
While some stock watchers have predicted that Zomato’s stock price may nearly double in the coming months, Uber didn’t appear to want to stick around and find out; the company may have made more had it sold its stake at the time of Zomato’s IPO, when the stock was valued at a minimum of Rs 72.
Around The World