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

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

Bloomberg reported Friday that Flipkart's board has approved the sale of a roughly 75% stake to the Walmart group, which also includes Google parent Alphabet. According to TOI, Walmart is on course to announce a $8-10 billion deal to pick up a majority stake in Flipkart over the next few days. These investors, are reportedly expected to fully or partially sell their shares in Flipkart as Walmart makes its acquisition bid for the company. 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.

This would still leave biggies like Tiger Global, Accel, Microsoft, Naspers and Ebay on the deal table, it said adding that Flipkart's holding company is now a private company - Flipkart Pte Ltd.

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". "It is important for food safety", the source said.

U.S. retailer Amazon is Flipkart's largest online competitor in India, though Flipkart has the biggest market share.

The logo of India's largest e-commerce firm Flipkart is seen on the facade of the company's headquarters in Bengaluru, India July 7, 2017.

Earlier this week, Indian TV channel CNBC-TV18 reported that Amazon.com had made a formal offer to buy 60% of Flipkart.

Utah Jazz vs. Houston Rockets - 5/4/18 NBA Pick, Odds, and Prediction
And Harden, who finished with 32 points and 11 assists in the shock defeat, says Houston paid the price for overlooking the Jazz. I originally had this going six games, but definitely didn't see Houston losing tonight. "Give them credit", Harden said.

Walmart shares closed 0.13 percent lower Thursday on the New York Stock Exchange, while Amazon stocks closed higher by 2.39 percent on Nasdaq. The U.S. retailer has been working to win over the Indian company since at least past year.

SoftBank declined to comment.

Much is left to speculation, however: Amazon, Walmart and Flipkart all refuse to comment in any official capacity on what could well become one of the most important e-commerce deals of the year. Founder Jeff Bezos has committed $5.5 billion to the country and his local chief, Amit Agarwal, has made progress by adapting the site to local conditions.

Binny Bansal and Krishnamurthy, a former executive at Flipkart's most influential shareholder Tiger Global Management, are likely to stay back after the deal.

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.

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