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Uber Sells 7.8% Of Its Share In India's Zomato For $392 Million: Reports

Uber Sells 7.8% Of Its Share In India's Zomato For $392 Million: Reports
According to two persons familiar with the situation, Uber Technologies sold its 7.8 per cent interest in Indian food delivery firm Zomato Ltd for $392 million in a block deal on local exchanges on Wednesday.
According to them, the transaction was completed at a price of 50.44 rupees per share. Requests for comment from Zomato and Uber were not immediately returned.
On India's Bombay Stock Exchange, shares of Zomato Ltd plummeted as high as 9.6 percent to 50.25 rupees (BSE). Later, the stock recovered some of its losses and was down 5.7 per cent at 0634 GMT. Zomato's shares closed at 55.6 rupees on the BSE on Tuesday.
According to the term sheet, which did not reveal the seller, the offer size for the block deal was set at 612 million shares, according to Reuters on Tuesday.
According to Reuters, Uber's equity sale was valued 30.87 billion rupees ($392 million).
Uber reported a net loss of $2.6 billion for the second quarter of 2022, $1.7 billion of which was tied to equity investments, including its Zomato holding. 
Its stake sale comes at a time when Indian entrepreneurs are trying to acquire new funding in the face of a worldwide market collapse and criticism of exorbitant valuations, following a record-breaking $35 billion in total fundraisings in 2021.
The transaction's only bookrunner was BofA Securities.
According to one report, the stake was purchased by approximately 20 global and Indian funds, including Fidelity, Franklin Templeton, and India's ICICI Prudential.
Fidelity could not be reached for comment immediately, while Franklin and ICICI declined to comment.
Zomato announced on Monday that it had received more orders and reduced its deficit for the June quarter to 1.86 billion rupees from 3.56 billion rupees the previous year.
The Indian food delivery company is also considering reorganising its administration so that each of its separate businesses has its own CEO, while the parent company is dubbed "Eternal."
The company, backed by China's Ant Group, made a stunning launch on the Mumbai stock exchange on July 23, 2021, but its shares have lost more than half of their value since then due to concerns about valuations and growth amid instability among global growth stocks.

Christopher J. Mitchell

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