New Delhi: UAE-based fintech firm Paytm Arab Payment, a step-down subsidiary of One97 Communications, has approved the allocation of shares amounting to a 49 per cent stake in the company to Abu Dhabi-based Abbar Global Opportunities Holdings Limited for about Rs 19 crore, a regulatory filing said on Monday.
Abbar Global Opportunities Holdings Limited (AGOHL) is a special purpose vehicle owned by Mohamed Ali Rashed Alabbar, founder of Emmar Properties -- the developer of projects such as Burj Khalifa and Dubai Mall. "The Board of Directors of Paytm Arab Payments...approved the issuance and allotment of 76,862 equity shares of face value (at par) of AED 100 each, comprising 49 per cent of the post-issue paid-up share capital of PAPL, to Abbar Global Opportunities Holdings Limited," the filing said.
Paytm Arab Payments LLC was incorporated to work towards the expansion and distribution of Paytm's technology-led merchant payments and financial services stack in the UAE as a wholly-owned subsidiary (WOS) of Paytm Cloud Technologies Limited. "Upon consummation of the aforesaid transaction, PAPL will cease to be a WOS of PCTL and will become its 51 per cent owned subsidiary, and will continue as a step-down subsidiary of the Company," the filing said.
The PCTL board, at its meeting held on December 22, approved the incorporation of two wholly-owned subsidiaries, to be set up in Indonesia and Luxembourg, respectively, with an initial investment of Rs 25 crore. The decision is in line with Paytm's earlier disclosure that it is exploring select new markets for future growth, and bringing its advanced technology across merchant payments and financial services to international markets, the filing said.
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