May 12 (Reuters) - China's Ant Group will sell a 4%

stake in Indian payments firm Paytm for $242 million,

a term sheet seen by Reuters showed on Monday.

Ant, an affiliate of Chinese conglomerate Alibaba Group ( BABA )

, will sell the stake at 809.75 rupees per share, a

discount of 6.5% to Paytm's closing price on Monday.

It was not immediately clear who the buyers would be.

Paytm and Ant Group did not immediately reply to a request

for comment.

Paytm has seen a spate of selldowns in the past two years,

including the exit of Warren Buffett's Berkshire Hathaway ( BRK/A )

and Japan's SoftBank Group, according to

exchange data.

Ant previously sold a 10.3% stake in Paytm in August 2023 to

founder and CEO Vijay Shekhar Sharma.

(Reporting by Scott Murdoch in Sydney, Ananta Agarwal and

Hritam Mukherjee in Bengaluru; Editing by Savio D'Souza and

Varun H K)