2 hrs ago
Mastercard to Sell Entire Pine Labs Stake in Block Deal
Mastercard plans to sell all of its shares in Pine Labs.
The sale could involve up to 4.97 crore shares.
Each share may be sold for ₹179.50.
This would make the deal worth about ₹892 crore.
The price is lower than Pine Labs’ previous market price of ₹193.70.
Pine Labs’ stock has recently recovered from its July lows.
The company also reported much higher profit in its April-June quarter.
Its profit rose to ₹19.57 crore from ₹4.79 crore a year earlier.
One brokerage expects the stock could rise, while its bear case predicts a decline.
Mastercard Asia/Pacific plans to sell up to 4.97 crore Pine Labs shares.
The block deal is scheduled for 22 September at ₹179.50 per share.
The proposed transaction is valued at approximately ₹892 crore, below Pine Labs’ previous close.
Mastercard held a 4.31% Pine Labs stake at the end of June.
Pine Labs’ first-quarter profit rose more than four-fold to ₹19.57 crore.
- Who
- Mastercard Asia/Pacific Pte. Ltd. plans to sell its entire Pine Labs holding.
- What
- A proposed block deal involves up to 4.97 crore Pine Labs shares at ₹179.50 each.
- Where
- The deal will be executed through Citi; the trading venue is not specified.
- When
- The transaction is scheduled for 22 September; the articles do not specify the year.
- Why
- The articles do not state why Mastercard is selling its stake.
Bearish View
Bullish View
Pine Labs stock outlook
Bearish View
Motilal Oswal’s bear-case scenario projects a 27% decline, with a target price of ₹140 per share.
Bullish View
Motilal Oswal initiated coverage with a Buy rating and a ₹250 target; its bull-case target is ₹330, implying 72% upside.
Impact of the block deal
Bearish View
The proposed offer is priced 7.33% below Pine Labs’ previous close and involves Mastercard exiting its entire holding.
Bullish View
Pine Labs’ stock has risen 40% from its July lows, while first-quarter profit increased more than four-fold and operating revenue grew 19.6% year-on-year.
Key facts
- Seller
- Mastercard Asia/Pacific Pte. Ltd.
- Shares offered
- Up to 4.97 crore Pine Labs shares
- Floor price
- ₹179.50 per share
- Estimated deal value
- Approximately ₹892 crore
- Previous closing price
- ₹193.70, making the offer price 7.33% lower
- Mastercard holding
- 4.31% at the end of the June quarter
- Pine Labs Q1 profit
- ₹19.57 crore, compared with ₹4.79 crore a year earlier
Sources
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