Business

Uber likely seller of 7.8% stake in India’s Zomato – source, term sheet

Uber Technologies (UBER.N) is the likely seller of a 7.8% stake in Indian food delivery firm Zomato (ZOMT.NS) being disposed of via a $373 million block deal on Wednesday, according to a source with direct knowledge of the matter.

The offer size of 612 million shares worth $373 million is based on the lower end of a 48-54 rupee price range set for the block deal, a term sheet seen by Reuters stated, adding that would be at a 2.8%-13.6% discount to the latest close.

Zomato and Uber did not immediately respond to a request for comment. Shares in Zomato rose 20% to 55.55 rupees on Tuesday.

BofA Securities is the sole bookrunner for the deal. The term sheet did not name the potential seller.

On Monday, Zomato said it had recorded more orders and narrowed its loss for the June quarter to 1.86 billion rupees ($23.67 million) from 3.56 billion rupees a year earlier.

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.