Zomato Limited and One 97 Communications Limited (Paytm) have confirmed ongoing preliminary discussions regarding the potential acquisition of Paytm’s movies and ticketing business by Zomato.
Both companies issued voluntary disclosures today, clarifying their positions on the matter amid widespread media speculation.
In a statement addressed to BSE Limited and the National Stock Exchange of India Limited, Zomato acknowledged the talks but emphasized that no binding decisions have been made that would necessitate Board approval and subsequent disclosure in accordance with the law.
The discussions are part of Zomato’s strategy to strengthen its “Going-out” business, aligning with its focus on its core business areas.
“We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law,” stated Ms. Sandhya Sethia, Company Secretary & Compliance Officer of Zomato Limited.
Similarly, Paytm’s statement highlighted that the company continuously explores strategic opportunities to enhance shareholder value, with the potential transfer of its Entertainment business being one such opportunity under consideration.
The company reiterated that these discussions are still in the preliminary stages and should be viewed as speculative.
“The Company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s Entertainment business, a component of our Marketing Services, is one opportunity under consideration,” stated Mr. Sunil Kumar Bansal, Company Secretary & Compliance Officer of One 97 Communications Limited.
Both companies have committed to making necessary disclosures as and when required, maintaining transparency with their shareholders and the market.
