AZB, JSA advise on Alibaba’s acquisition in Zomato

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Food delivery app Zomato has received an investment of US$200 million from Alibaba’s affiliate Ant Small and Micro Financial Services Group (Ant).

Info Edge (India), which operates the job website Naukri and a key investor of Zomato, informed the Bombay Stock Exchange that it would divest 32,629 shares (6.6%) in Zomato Media at a consideration of US$50 million. The other US$150 million will come from Ant in the form of a primary fund raising.

AZB & Partners advised Zomato on the transaction. “Our role in this matter was limited to the laws of India and other requisite compliances under extant Indian regulations governing foreign direct investment for reporting and recording the share issuances and transfers in connection with the primary and secondary transactions,” AZB partner Vinati Kastia told India Business Law Journal.

The aggregate shareholding of Info Edge would decline from 44.7% to 30.9% after the transfer of shareholding by Info Edge and the primary fund raising.

The AZB team also consisted of partner Abhishek Shinde, senior associate Ankit Tandon, and associates Aprajita Kapoor, Sourya Donkada. A J Sagar Associates (JSA) team comprising partners Rohitashwa Prasad and Swetha Prashant, and associate Anshu Bansal advised Info Edge.

“Certain filings will need to be made by Naukri with the Reserve Bank following the closing of the transaction,” said Prasad. “Additionally, InfoEdge and Naukri had to obtain their board/shareholders’ approval. InfoEdge, being a listed entity, also had to comply with certain disclosure norms under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.”