Flipkart board clears 75% stake sale deal with Walmart for $15 billion

Amazon looking to outbid Walmart in Flipkart deal

Amazon looking to outbid Walmart in Flipkart deal

It is unlikely that Flipkart will agree to sign over such an extensive part of its shares to either party: only last month, Flipkart shareholder Softbank resisted Walmart's bid for just 30% of the Indian company. The deal offered by the Jeff Bezos-run company proposed to merge Flipkart entirely with its Indian arm and sought a non-compete agreement with Flipkart's founders for 1-2 years.

The factor daily report quoted sources a saying, "Cash component will be close to 55%, which will mark the exit of some of the largest investors in Flipkart".

The talks with Walmart for what could be its largest acquisition to date are still ongoing, and a deal is expected to be clinched soon, two people told Reuters on Wednesday.

CEO Krishnamurthy is expected to continue in his role, but numerous reports have been pointing to the exit of one of the two founders, Sachin Bansal, who is now the executive chairman of the company.

In a resolution Flipkart filed with the Singapore authorities, the company said it would look to acquire its own shares from investors at $131.4 per share. Flipkart, Walmart and Google didn't immediately respond to requests for comment. The Times of India report cites a source as saying the companies were working out the sale of Sachin Bansal's shares to Walmart. Walmart has been trying to pick up its e-commerce sales, which has been on a decline and a threat for the company that is trying to rival online giant Amazon.

Amazon is reported to have offered Flipkart a higher valuation of about Dollars 22 billion, along with a break-up fee of USD 2 billion.

These sellers are demanding clarity on the way forward on the grounds that they too need to prepare their business plans accordingly, in light of the deal that is likely to value Flipkart at about $20 billion.

The company's largest backers like New York-based Tiger Global, Japan's SoftBank, Accel Partners, Microsoft, South African media and internet group Naspers, and eBay did not participate in the buyback. Krishnamurthy, who took over as CEO from Binny in January last year, is seen to have turned around the e-commerce major after two sluggish years when it ceded market share to Amazon under the leadership of Sachin. It will also be one the biggest acquisition deals by Walmart.

Recommended News

  • Veterinarian accused of smuggling heroin in puppies to New York City

    Veterinarian accused of smuggling heroin in puppies to New York City

    United States prosecutors say he sewed the packets of heroin, with a street value of $2m into the abdomens of six puppies. Andres Lopez Elorza became a fugitive in 2005 when two dozen suspected drug traffickers in Colombia were arrested.
    Tottenham striker Harry Kane fires WARNING to Liverpool after Watford victory

    Tottenham striker Harry Kane fires WARNING to Liverpool after Watford victory

    Tottenham on Monday moved closer to securing qualification for next season's Champions League as goals from Dele Alli and Harry Kane gave them a 2-0 win over Watford .
    Lea Michele Is Engaged: See Her Gorgeous Ring

    Lea Michele Is Engaged: See Her Gorgeous Ring

    A Michele spokesperson confirmed the news that the bride to be is officially engaged to boyfriend Zandy Reich . Lee Michele is engaged now! Sending all our love and congratulations to the happy couple.
  • Gordon, Soler lift Royals over Red Sox in 13 innings

    Gordon, Soler lift Royals over Red Sox in 13 innings

    It's just he's able to see the ball pretty deep and his quickness and his reaction skills are awesome.Just extremely quick hands. The Boston Red Sox maintained their grip atop the American League East after slipping by Kansas City 5-4 on Wednesday.
    Oculus Go VR Headset Sells Out in Hours

    Oculus Go VR Headset Sells Out in Hours

    As for how much you'll pay for the chance to jump into VR with no wire, it depends on what Oculus Go storage option you choose. You get all the technology needed to play VR experiences and games in the headset itself, plus a wireless controller.
    UNSC delegation to meet Rohingya Refugees in Bangladesh

    UNSC delegation to meet Rohingya Refugees in Bangladesh

    State minister for foreign affairs M Shahriar Alam accompanied the UNSC delegation during the visit. Members of the UN Security Council, who promised Sunday to work hard to resolve a crisis.
  • Israeli PM talks Iran, trade with Japanese counterpart

    Israeli PM talks Iran, trade with Japanese counterpart

    Netanyahu also lauded "the tremendous growth in Japanese investments in Israel and Israeli investments in Japan". Thousands of others have been injured - more than 140 seriously - over the same period, al-Qidra said.

    Just Group plc (JUST) Given Average Recommendation of "Buy" by Brokerages

    S.p.A. researches, develops, makes, distributes, and sells laser systems in Italy, the European Union, and internationally. The shares were bought at an average price of GBX 404 ($5.63) per share, for a total transaction of £12,120 ($16,903.77).
    IPhone X failure? Apple trying to reduce existing supply

    IPhone X failure? Apple trying to reduce existing supply

    All this is incongruous to what KGI Security analyst Ming-Chi Kuo has mentioned about the newly launched gadget Apple iPhone SE 2. According to the report , the SE 2 will be more expensive than the original SE, but still cheaper than the iPhone 7.
  • The 3 wildest moments from Elon Musk's Tesla earnings call

    The 3 wildest moments from Elon Musk's Tesla earnings call

    Tesla began the quarter with $3.96 billion in cash and equivalents, but that fell to $3.22 billion by quarter's end. But on Wednesday, Musk said manufacturing has actually been improved by taking some robots off the assembly lines.
    Juve scored twice in last five minutes to sink ten-man Inter

    Juve scored twice in last five minutes to sink ten-man Inter

    Higuain headed past goalkeeper Samir Handanovic the free-kick from Dybala as the visitors secured a 3-2 win. Douglas Costa fired in the opener for Juventus after 13 minutes following a cross from Juan Cuadrado .
    The Fed's preferred inflation measure nears its 2% target

    The Fed's preferred inflation measure nears its 2% target

    The central bank is widely expected to stand pat on policy and investors will be watching for hints of a rate hike in June. Yields on 10-year TIPS (Treasury Inflation-Protected Securities) re-acted the same, down to 0.7762% from 0.7829%.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.