Zomato acquisition of

BlinkIt
CEO- Deepender Goyal

B. Mahathi
Roll no. 20LLB019
Zomato: Business Model
• Other internet Services
Connecting customers with restaurants and food delivery
services.
• Share Holders
Deepinder Goyal: 369,471,500 shares, valued at ₹65.9
billion.
Tiger Global Management, LLC: 123,486,408 shares,
valued at ₹22.0 billion.
Acquisition
• All-Stock Deal
Board resolution authorizing the purchase of 33,018 equity
shares for a total purchase price of Rs 4,447.48 crores.
• Share exchange Ratio
• Impact on Share Holding
Sequoia Capital: Initially holding a 6.41% stake in Zomato, Sequoia
Capital reduced its shareholding to 4.4% through the sale of 17.2 crore
shares in the open market.
Uber: Uber Technologies sold its entire 7.78% stake in Zomato for
₹3,088 crore ($390 million)
Acquisition Agreement
• Article 2 - Sale and Transfer
• Article 3 - Employees – ESOP and continuance
• Article - Share allotment on preferential basis
• Article 6- Representations and Warranties
• Article 7 - Conditions
• Article 8 - Conduct – best efforts; solicitation
• Article 10 Post-closing – Non-compete
• Article 12 Indemnification
• Article 13 Terms and Termination
• Article 14 Miscellaneous – Governing law of India; Arbitration clause
Reasons
• Zomato issued up to 629 million shares, amounting to an equity stake
of 6.88% on a fully-diluted basis.
• To fund losses in Blinkit during the remainder of CY22 and CY23, with
most of this capital allocated towards supporting Blinkit's operations
• Zomato's Expansion Plans
• Competitive Landscape
• Additional Acquisition of Blinkit's warehousing and ancillary services
business for about $8 million in cash