Post by : Bianca
Haleem
Paytm Arab Payments LLC, a subsidiary under One97 Communications based in the UAE, has agreed to issue equity shares representing a 49% stake to Abu Dhabi's Abbar Global Opportunities Holdings Limited for about Rs 19 crore, as revealed in a regulatory filing on Monday.
Abbar Global Opportunities Holdings Limited is a special purpose vehicle under Mohamed Ali Rashed Alabbar, the distinguished founder of Emaar Properties, known for iconic constructions such as the Burj Khalifa and Dubai Mall.
According to the filing, the Board of Directors at Paytm Arab Payments sanctioned the allotment of 76,862 equity shares with a face value of AED 100 each, equating to 49% of the post-issue paid-up capital of the firm for Abbar Global Opportunities Holdings Limited.
Established to enhance the distribution of Paytm's technology-driven merchant payment and financial solutions in the UAE, Paytm Arab Payments was originally incorporated as a wholly owned subsidiary of Paytm Cloud Technologies Limited.
Upon the deal's finalization, Paytm Arab Payments will transition from being a wholly owned subsidiary of Paytm Cloud Technologies to a 51% owned one, while still acting as a step-down subsidiary of One97 Communications, the filing noted.
In another development, Paytm Cloud Technologies' board has approved setting up two new fully owned subsidiaries in Indonesia and Luxembourg, each requiring an initial investment of Rs 25 crore. This aligns with Paytm's goal to enter selected international markets and enhance its global merchant payment and financial services technology.
This recent investment signifies Paytm's commitment to broadening its international footprint by partnering with strategically positioned entities with extensive regional knowledge.
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