Flipkart Said to Be Readying Up to $950 Million Offer for Snapdeal
The e-commerce leader Flipkart should make a revised offer of 900-900 million dollars (about Rs 5,800 crore – Rs.6122 crore) for the purchase of rival Snapdeal, according to sources.
The new offer is almost equivalent to the original $ 1 billion sale price for the acquisition of the besieged e-commerce market, private development sources said.
They do not want to be identified because the discussions are always over and the agreement has not been signed.
A source said a new offer of 900-900,000,000 should be made next week.
When contacted, Snapdeal, Flipkart and Softbank declined to comment.
The Snapdeal Board has already rejected an offer of $ 800 million to $ 850 million (about 5.5 million pounds) of Flipkart when it felt that the amount has underestimated the company since the due diligence report was clean.
SoftBank, the largest investor Snapdeal, played a mediating role in the sale for several months. The Snapdeal Council was also represented by its founders (Kunal Bahl and Rohit Bansal), Nexus Venture Partners and Kalaari Capital.
Snapdeal also participates in separate talks to sell FreeCharge (mobile portfolio operations) and Vulcan Express (logistic arm).
These offers are also likely to be closed in the coming weeks.
The case between Snapdeal and Flipkart, if completed, will mark the largest acquisition in India’s e-commerce space.
One of the major competitors in the Indian segment of retail electronics, Snapdeal has seen its fortune fail amid intense competition from Amazon and Flipkart.
Snapdeal’s valuations also fell around $ 6.5 trillion in February 2016. SoftBank has canceled more than $ 1 billion for the valuation of its investment in Snapdeal.