Snapdeal decline Flipkart’s INR 5,500 Cr takeover offer

  • Snapdeal decline Flipkart’s INR 5,500 Cr takeover offer
05-07-2017 | Pratidin Bureau. |

Snapdeal board has rejected an offer of around USD 850 million (around Rs 5,500 crore) from Indian e-commerce giant and its competititor, Flipkart. SoftBank, The board also has representation from Snapdeal founders (Kunal Bahl and Rohit Bansal), NVP and Kalaari Capital along with SoftBank, Snapdeal's largest investor.
According to sources, Flipkart has been tracking the proceedings for a takeover from the last few months and completed the due diligence process before making an offer of USD 800-850 million to buy Snapdeal.
However, Snapdeal's board declined the offer and felt the amount undervalues the company as the due diligence report is impressive. Another source said: "The first offer has been rejected but talks are still on. It is an ongoing discussion". Talks between both the organizations are expected to continue but it is yet unclear if and when Flipkart will come back with a revised formal offer.
Flipkart’s offer only includes Snapdeal’s marketplace business does sparing Snapdeal’s payments subsidiary Freecharge and its logistics business Vulcan from the offer, both of which are being sold separately. The fate and final price of the deal now depends on negotiations between their two largest shareholders SoftBank (Snapdeal) and Tiger Global Management (Flipkart).

Tags : Snapdeal Flipkart Softbank takeover acquisition offer

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