Uber Technologies is likely to exit food delivery aggregator Zomato through a block deal on Wednesday, initial reports suggest.
The 7.8% stake sale is expected to fetch between INR 2,938.6 crore and INR 3,305 crore
Uber had acquired this stake when it had sold off its own food delivery arm ‘Uber Eats’ to Zomato in January 2020 in a no-cash, stock transaction deal valued at INR 1,376 crore at that time.
Uber is expected to make gains of at least 2.5 times from the block deal, expected to be settled on August 5. The offer price for the deal is at INR 48-54 a share.
The block deal also comes a week after the one-year lock-in-period for pre-IPO shareholders of Zomato ended on June 23, making Uber the first pre-IPO investor in the food delivery company to exit.
Zomato said its food delivery business hit an important milestone in the June quarter by breaking even at adjusted EBITDA level. It is also reorganizing its management to move to a multiple CEO structure, with a renaming of the parent entity in the works.