Zomato
Zomato likely to call board meeting to approve Blinkit buyout: Report
Mumbai: Food aggregator platform Zomato may call a board meeting on June 17 to approve the buyout of quick commerce company Blinkit, formerly known as Grofers, media reports said.
The two companies had discussed a potential deal two years ago, ET reported.
Under the deal, Blinkit's shareholders are expected to get less than a 10 percent stake in Zomato. Blinkit's major investor SoftBank Vision Fund will get a 4 percent stake in the food delivery company, the report said citing people aware of the matter.
Blinkit's investors will have to compulsarily hold Zomato's shares for at least six months.
On Monday, Zomato's stock prices closed at Rs 69.85, based on which a 10 percent stake is equivalent to about Rs 5,500 crore, the report said.
Zomato already holds a 10 percent stake in Blinkit.
ET had earlier reported that Zomato is likely to issue one share for 10 Blinkit shares.
Zomato has been trying to enter the quick-commerce space, which has several existing players such as Swiggy Instamart, Zepto, and Tata-owned BBNow among others.
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