Vijay Shekhar Sharma, founder and chief executive of Paytm, has entered into a deal with Ant Financial to acquire a 10.30% stake in the Indian financial services firm in a move that appears to be orchestrated to cut the Noida-headquartered giant’s exposure to the Chinese company.

Resilient Asset Management, a firm fully owned by Sharma, is acquiring the stake from Ant Financial, Paytm said. The deal is being executed at Paytm’s share closing price on August 04, making the 10.3% Paytm stake worth $628 million. 

Neither Sharma nor Resilient are making any cash payment in the deal, which is being executed off-market. Furthermore, Sharma has made no pledge, guarantee, or other value assurance directly or otherwise to Ant Financial, Paytm said.

Paytm jumped over 6.5% on the news.

Following the deal, Sharma’s stake in Paytm will increase to 19.42%, whereas Ant Financial’s shareholding will pare down to 13.5%, Paytm said. The move follows a turnaround at Paytm, which had a lacklustre listing but has improved its finances significantly in recent quarters.

Sharma’s Resilient will issue optionally convertible debentures to Ant Financial, allowing the Chinese giant to “retain economic value of the 10.30% stake,” Paytm said. Ant Financial doesn’t have a representation on Paytm’s board.

“I am proud of Paytm’s role as a true champion of made-in-India financial innovation, and our achievements in revolutionizing mobile payments and contributing to formal financial services inclusion in the country. As we announce this transfer of ownership, I would like to express my sincere gratitude to Ant for their unwavering support and partnership over the past several years,” Sharma said in a prepared statement.