Food delivery and quick commerce company Swiggy will sell its B2B distribution business Lynk Logistics to Udaan at an enterprise value of Rs 500 crore.
The transaction will also see Swiggy picking up a minority stake in Udaan.
In a notice to the stock exchanges, Swiggy said the transaction is proposed to be undertaken through a sharp swap wherein Udaan will allot 166,534 Series R compulsorily convertible preference shares (CCPS) at a price of $314.40 per CCPS, which works out to a stake of around 2.8%.
Swiggy will also invest Rs 75 crore as primary equity into Udaan, translating into a 0.4% stake.
Both the transactions are expected to give Swiggy a total stake of 3.2% in Udaan.
