Alibaba to offload 3.5% stake in Zomato via block deal tomorrow: Report

China’s Alibaba Group is likely to sell a 3.5% stake in online food delivery aggregator Zomato Ltd through a block deal that could fetch it about $200 million, according to reports.

The block deal is likely to take place on Wednesday, and Alibaba Group may offer the shares at a 5-6% discount to Tuesday’s close price. On Tuesday, the stock ended 1.3% lower at Rs 63.55.

As of September 30, the Chinese conglomerate held a 12.98% stake in Zomato. Citigroup is said to be the broker to the deal, according to reports.


Alibaba Group reported a net loss for the quarter ended September, primarily due to significant erosion in the fair value of its investments in publicly traded entities.

Year-to-date, shares of Zomato have fallen by a sharp 54%, when the Nifty 50 has given positive returns to the tune of 7%.

The American Depository Receipts of Alibaba Group have shed more than 38% in the said period.