UAE-based fintech firm Paytm Arab Payment has announced the allocation of shares amounting to a 49% stake in the company to Abu Dhabi-based Abbar Global Opportunities Holdings Limited for about Rs. 19 crore.

Mohamed Ali Rashed Alabbar, founder of Emmar Properties, owns Abbar Global Opportunities Holdings Limited (AGOHL).

A regulatory filing confirmed the approval of Paytm Arab Payment, a step-down subsidiary of One97 Communications. “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% of the post-issue paid-up share capital of PAPL, to Abbar Global Opportunities Holdings Limited,” the filing said.

“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 added.

At a meeting last December, the PCTL board approved the incorporation of two wholly-owned subsidiaries to be set up in Indonesia and Luxembourg at an initial investment of Rs. 25 crore.

Paytm Arab Payments LLC was incorporated to enhance Paytm’s 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% owned subsidiary, and will continue as a step-down subsidiary of the Company,” the filing concluded. – editor@nrifocus.com