Flipkart shareholders barring SoftBank Group agree to sell stake to US retail giant Walmart

Key shareholders of Indian e-commerce player Flipkart have reportedly agreed to sell their stake to US retail giant Walmart.

FP Staff April 17, 2018 21:48:37 IST
Flipkart shareholders barring SoftBank Group agree to sell stake to US retail giant Walmart

Key shareholders of Indian e-commerce player Flipkart have agreed to sell their stake to US retail giant Walmart, a media report quoted people aware of the development as saying.

According to The Economic Times, Walmart has reached an agreement on buying the stakes of Tiger Global Management, Accel, Naspers and Tencent Holdings. However, Japan’s SoftBank Group, which owns roughly one-fifth of Flipkart via its Vision Fund, is reportedly holding out for a better price.

Flipkart also counts eBay and Microsoft Corp among its investors.

Flipkart shareholders barring SoftBank Group agree to sell stake to US retail giant Walmart

Representational image. Reuters

“Discussions with SoftBank are still ongoing… Most of the others have come aboard. In a deal like this, there are always ebbs and flows, but there is a time factor to consider as well,” the person aware of the development was quoted as saying by the newspaper.

Last week, Reuters reported that Walmart Inc was likely to reach a deal to buy a majority stake in Flipkart by the end of June in what could be the US retail giant’s biggest acquisition of an online business.

Walmart has completed its due diligence on Flipkart and has made a proposal to buy 51 percent or more of the Indian company for between $10 billion to $12 billion.

A deal with Flipkart will fuel Walmart’s battle with Amazon.com, for a bigger share of India’s e-commerce market, which Morgan Stanley estimates will be worth $200 billion in a decade. Local media have reported that Amazon is exploring a possible counter offer for Flipkart.

Walmart will buy both new and existing Flipkart shares, with new shares expected to value the Bengaluru-based firm at least $18 billion, unnamed sources said. The price for existing shares would value the firm at about $12 billion

With inputs from Reuters

Updated Date:

also read

Amazon workers walk-out in UK: Staff claims their toilet breaks were timed
World

Amazon workers walk-out in UK: Staff claims their toilet breaks were timed

Talking to BBC, some of the employees have shared their ordeal of working in 'severe' conditions at the company. Not just that but the revelation has literally shocked all that claim that even their toilet breaks are timed

Brazil police: Colombian businessman ordered killings of indigenous expert, British journalist in Amazon
World

Brazil police: Colombian businessman ordered killings of indigenous expert, British journalist in Amazon

Pereira and Phillips were traveling in the remote area of the Amazon when they disappeared. Their bodies were recovered later. Phillips was researching for a book about how to save the world’s largest rainforest

Amazon founder Jeff Bezos likely to sell Washington Post to buy NFL team Commanders, say reports
World

Amazon founder Jeff Bezos likely to sell Washington Post to buy NFL team Commanders, say reports

Jeff Bezos bought the Washington Post in 2013 for $250 million. New York Post reported that Bezos is 'looking to clear the way' to get the Commanders from embattled owner Dan Snyder