Walmart to buy 73% of Flipkart in India's biggest e-commerce takeover

04 May, 2018, 14:17 | Author: Shannon Aguilar
  • Share of Unique Visitors in India

Mint reported on 2 May that Walmart, the world's largest retailer, is in final negotiations to buy a majority stake in Flipkart even as a rival combination of Flipkart and Amazon looks increasingly unlikely. The transaction was completed on April 27, 2018.

Among the investors who sold their shares in this exercise were Shekhar Kirani, Deep Nishar, and IDG Ventures. The deal between the two retail giants may value Flipkart at $20 billion, which suggests Sachin Bansal would get around of $1 billion on his exit. Now, however, with a sale of the company near, it needed to become a private entity in Singapore to avoid regulatory hurdles.

Walmart is on course to announce a $8-10 billion deal to pick up a majority stake in Flipkart over the next few days. Flipkart had then announced that it had cash in excess of United States dollars 4 billion on its balance sheet. Taking this as the base price per share and multiplying it with the number of shares in Flipkart, which stands at around 134.6 million, one can arrive at an estimated valuation of $17.69 billion.

Walmart informed Flipkart it plans to sell shares in an initial public offer (IPO) in three years time. The bid emphasizes the importance of gaining a greater foothold in online sales in India, a market expected to be worth $200 billion a year within a decade.

Factor Daily stated some friendly investors such as Tencent, Microsoft and Tiger Global might not cash out, while Softbank, which holds 20 percent stake, will exit, making $4 billion in the process.

China snatches Dominican Republic from Taiwan in diplomatic blow
He emphasized the significance of the decision, saying that it will be in the interests of the Dominican Republic and its people. He said that is extremely regrettable and added that Taiwan will not yield to pressure from Beijing.

Denied Power, Armenian Opposition Leader Urges Nationwide Strikes
They also accuse Sarkisian and his dominant Republican Party of widespread corruption and failing to raise living standards. Pashinyan has said that the main task of any interim government is organizing the next parliamentary elections.

Bills to hold open competition with Josh Allen, other QBs
Allen's inaccuracy as a thrower against marginal competition makes him a risk that many teams wouldn't want to take. Buffalo does have Kelvin Benjamin returning after playing through much of last season with a knee injury.

"This buy-back and the subsequent conversion to private company status appear to be part of a series of steps aimed at easing a proposed acquisition by Walmart".

A person familiar with the matter told Reuters that the probability of a Flipkart-Amazon deal was low, and that such a deal may spark competition fears as Flipkart and Amazon dominate India's e-commerce market.

As per both reports, Google's parent Alphabet too will be participating in the deal and will pump in around $3 billion.

In December previous year, Flipkart Ltd, the Singaporebased parent entity of the Indian e-commerce giant, had bought back shares worth close to $800 million from investors including Tiger Global, Accel Partners, and DST Global.

Japanese conglomerate Softbank will be emerging as the biggest victor in all this.

Recommended:



Popular

Snap CEO Evan Spiegel Stands By Redesign Despite Rocky Q1 Results
And after months of standing by the changes, the company last month was forced to backtrack, promising to redesign the redesign. Failing to capitalize on Facebook's recent missteps, Snap's first-quarter earnings and usership missed analyst expectations.

Starting XI: Real Madrid v Bayern
Tolisso forced another save from Navas before Rodriguez had another effort blocked as Bayern sought a clinching goal. Keylor Navas made a spectacular save on David Alaba from a tight angle just moments after Madrid's goal .

Swipe Right: Facebook Just Announced It's Launching a Dating App (Sort Of)
The announcement sent the stock of Match Group , which owns properties such as Tinder , OkCupid, and Match.com, down 18 percent. That could potentially allow it to match people more effectively than rival sites with less data at their fingertips.

Nichols (NICL) Price Target Raised to GBX 1540
Los Angeles Cap Mgmt And Equity Rech has invested 0.11% in SINA Corporation (NASDAQ:SINA). 1,341 are held by Barclays Pcl. It operates through Roadside Assistance, Insurance Services, Driving Services, and Insurance Underwriting divisions.

Cavaliers, Raptors renew playoff rivalry beginning May 1
Despite the Cavs ending the Raptors season the last two season, Charles Barkley is fully in the camp of the team from the 6ix. At this point in his career James no doubt considers any season that does not end with a championship parade to be a failure.

Louis Tomlinson proud to share name with Prince Louis
As in the past, the Duchess had a quick labour and Prince Louis was born at 11.01 at 8lbs 7oz. He will be known as His Royal Highness Prince Louis of Cambridge.

Tornado watch issued for central Kansas
North Dakota recognizes this week as Severe Summer Weather Awareness Week - a reminder that severe weather is not far away. A strong and slow-moving storm system has already brought a first round of severe weather to the Great Plains.

Nikol Pashinyan officially nominated for Armenian PM
Rallies continued as the opposition demands an interim prime minister, who will not be from the ruling party. A candidate needs 53 votes to get elected.

10 interesting facts about Great Barrier Reef
These have been recorded in 2016, and 2017 and almost 900 miles of the UNESCO World Heritage site has been affected. The Australian government this week announced its largest-ever single investment in Great Barrier Reef protection.

Saudi Arabia's Grand Entertainment Resort, Twice As Big As Disney World
For years, Saudi Arabia has made normalizing relationships with Israel contingent on Tel Aviv's withdrawal from those lands. Saudi Arabia now doesn't officially recognize Israel - although the two powers have a common interest in combating Iran.