Paytm Founder to Take Control From Ant Without Paying Cash

(Bloomberg) — Paytm founder Vijay Shekhar Sharma will acquire a 10.3% stake from China’s Ant Group Co., in an unusual transaction that will make the entrepreneur the company’s single biggest shareholder without paying any cash.

Sharma, also chief executive officer of Paytm parent One97 Communications Ltd., will increase his holding in the Indian fintech company to 19.42% while Ant’s drops to 13.5%, according to a regulatory filing. Ant gets convertible securities that will give it the option to recoup its stake in future. That means it can raise its holding back to above 23% at a later date, potentially benefiting if Paytm’s stock price rises, though the company didn’t specify a timeframe for exercising that option.