Paytm raises $1bn from new and existing investors. LVMH has agreed to buy Tiffany in a $16.2bn deal. Airtel and Jio bid on Reliance Communications' assets. Uber has been denied licence renewal in London. Zomato emerges as the frontrunner to acquire UberEats.
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Money in the Game: Payments platform Paytm has raised $1bn from new and existing investors, including Japan’s SoftBank Group, China’s Ant Financial and Discovery Capital valuing the company at c. $16bn.
As part of the investment round, SoftBank has pumped in $200mn while Ant Financial has invested $400mn. These were joined by new investors, including T. Rowe Price Associates. This takes the total investment raised by Paytm to about $3.5bn.
The fresh investments will be used for growing the payments and financial services business, noted Founder Vijay Shekhar Sharma. ET Tech
Paytm plans to invest INR10,000cr over the next 3 years to bring financial inclusion to more under-served users in the country.
Broker Goes Broke: Recently, market regulator SEBI banned stock broker Karvy Stock Broking (KSBL) for client defaults to the tune of INR2,000cr making it one of the country’s largest cases of equity broker defaults. In an ex-parte interim order, SEBI banned Karvy from taking new clients and also from executing trades for existing clients.
KSBL said it has around INR25-30cr worth of outstanding dues to less than 200 clients. “The whole issue is of outstanding payment to around 150-180 clients of the brokerage...and in the next few days (or could be less than a fortnight) the payments to these clients would be cleared,” Karvy Group Chairman C Parthasarathy reportedly said. Hindu BusinessLine
As of date, it is estimated that around 5,000 brokers and brokerage houses are active in Indian equity markets. SEBI's gag order on Karvy is likely to lead to a wider investigation into the country's brokerage houses. Deccan Herald
FYI: Confused regarding what to do if you're one of Karvy's 2.55L clients? Here's an explainer.
What's in a Billion?: San Francisco-based bank and stock brokerage firm Charles Schwab on Monday announced plans to buy discount brokerage rival TD Ameritrade in an all-stock deal valued at $26bn. The merging of these two discount brokers will create a mammoth with more than $5tr in client assets. CNBC
Luxury Meets Jewellery: French luxury goods company, LVMH Moët Hennessy Louis Vuitton has agreed to buy US jeweller Tiffany in a $16.2bn deal.
Tiffany's acquisition is likely to strengthen LVMH's position in jewellery and further increase its presence in the US.
Previously: Tiffany had turned down LVMH's initial advance made just five weeks ago, stating that it significantly undervalued the company. The new deal values each of Tiffany shares at $135 in cash and is higher than the initial offer of $120 a share, which valued the business at $14.5bn. BBC News
Founded in 1837, Tiffany at present employs more than 14,000 people and operates about 300 stores.
The companies said they expected to close the deal in mid-2020, subject to the approval of regulators and Tiffany shareholders.
Watch this to know what Tiffany adds to LVMH.
Value Lies in the Eyes of the Beholder: Restaurant discovery and food delivery platform Zomato has emerged as the frontrunner to acquire Uber's food delivery business in India.
Zooming Out: Uber has quoted a price of $500mn for UberEats. The negotiations include a stock deal and Uber might invest in Zomato’s next financing round.
Previously: Uber had also approached Swiggy earlier in 2019, but the talks failed due to differences over valuation. ToI
No Uber No Cry: London’s transport regulator, Transport for London (TfL), has refused to grant ride-hailing platform Uber a new license in the city after authorities found that more than 14,000 trips were taken with uninsured drivers.
Transport for London announced the decision not to renew the ride-hailing firm’s licence at the end of a two-month probationary extension granted in September.
Uber has meanwhile confirmed that it will appeal the decision. The Guardian
Do Your Bidding: Telecom rivals Reliance Jio and Bharti Airtel are all set to compete for Reliance Communications' assets when bids will be opened on Monday, which is also the last day for submitting bids.
While Airtel and Jio are expected to bid mainly for RCom's 850 MHz spectrum, I Squared Capital is likely to vie for the telco's data centres and optic fibre assets. RCom's 43,000 towers, housed under Reliance Infratel, are also up for sale. UV Asset Reconstruction Company may also bid for RCom’s assets. ET Telecom News
Meanwhile: Vodafone Idea, Bharti Airtel and Reliance Jio had earlier announced that tariff hikes will be increased from December 1. Now, the Department of Telecommunications has set up an internal committee to examine the impact of these hikes and has said that the government may intervene if the rise is ‘exorbitant’. BS
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