Zomato‘s board of directors on Wednesday approved a share purchase and subscription agreement with Paytm operator One 97 Communications, Wasteland Entertainment Private Limited (WEPL) and Orbgen Technologies Private Limited (OTPL) to acquire their entertainment ticketing business.
Under the agreement, One 97 Communications will transfer its movie ticketing business, and sports and events ticketing business to its wholly-owned subsidiaries OTPL and WEPL, respectively, through a slump sale.
Zomato will acquire the entire stake owned by OCL in OTPL and WEPL through a share purchase transaction, resulting in OTPL and WEPL becoming wholly-owned subsidiaries of the food delivery player.
The company further said it would do a primary infusion into OTPL and WEPL by way of a preferential allotment for an amount equal to the slump sale consideration, which will be used to discharge the consideration payable to OCL for the slump sale.
The cost of acquisition of OTPL is estimated at INR 1,264.6 crore while that of WEPL at INR 783.8 crore, the filing said.
Zomato has put the indicative time period for completion of the acquisition up to 90 days.
OTPL was incorporated on November 23, 2007 in India and the company is in the business of listing and sale of movie tickets and other services. WEPL was incorporated on December 21, 2015 in India. WEPL is in the business of listing and sale of event tickets and other services
The audited turnover of OTPL as on March 31, 2024 was INR 13.14 crore while that of WEPL is INR 236.03 crore.
