Highlights of snapdeal sold to flipkart
- Flipkart will buyout Snapdeal for $950 million dollars.
- The final decision in the hands of Snapdeal investors.
- The board meeting is scheduled on Friday.
Snapdeal sold to flipkart, flipkart buys snapdeal, flipkart shops snapdeal, snapdeal sold for $900 million only:-this news has been booming in the e-commerce market for very long. But after rejecting the initial offer of 500 million dollars Snapdeal has accepted the deal for the $900- 950 million dollars. The news is coming from the inner sources and viral sources yet.
Both the Flipkart and Snapdeal is not ready to comment on the news “Snapdeal sold to flipkart“right now. But after the rejection of the first offer of Flipkart, they made one revised proposal on the 17 July to the Snapdeal and which they have accepted according to the sources. Now the approval of the investors of the Snapdeal is being waited and after that, the deal will be sealed.
The Flipkart need the special blessing of the major Snapdeal shareholder Azim Premji, who has some issue with the payment method. But Flipkart has resolved the issue in their revised proposal, that what sources are telling. But still the ball is in the Premjis investors court and they are not expected to lower down their weapons.
According to the flying news of Snapdeal sold to flipkart in the market, Flipkart revised offer did not include the subsidiaries of the Snapdeal, like FreeCharge, Vulcan Express, and Unicommerce.Infibeam is not likely to be part of the deal and when the Infibeam is asked about it, they preferred to remain quiet on all this matter. Whereas FreeCharge deal will be expected to complete soon.
The whole deal will take place in three stages- first, the Softbank will buy out the share of the Snapdeal and their investors -Nexus and Kalaari Capital. The capital will then be put into Flipkart by SoftBank. In the last stage, Flipkart will merge with Snapdeal. In the initial stages, Flipkart will operate through the median name of the Snapdeal.
The equity ratio is not yet finalized by the both companies, but it is likely to be finalized on the upcoming Friday meeting between the board members of the two companies. The final disclosure on the deal is expected after this much-awaited meeting.
The whole deal will take around 3 months to get completed and Flipkart to fully own the Snapdeal. The Flipkart shares are expected to touch the sky after this deal and they will become the promising big daddy of the Indian e-commerce market.
The Indian e-commerce market has been blooming very fast nowadays and according to 2016 report from accounting firm EY noted that e-commerce has grown at a compound annual growth rate of over 50 percent in the last five years in India.
The Flipkart is going to take the full advantage of this booming e-commerce market of India as after Snapdeal, Amazon is going to be their major competitor only. The deal will open the great opportunities for the Flipkart and its team.
The Snapdeal founders Kunal Bahl and Rohit Bansal have been formulating the plan B in case anything goes wrong in the deal. But all that is in the womb of future, so just stay tuned with us for more action on this news.