Walmart buys Flipkart with special warnings

May 3, 2018 - By Dolores Ford

Walmart buys Flipkart with special warnings

Walmart buys Flipkart with special warnings

Only last week, one of the biggest retailers Walmart announced their attention to buy Flipkart Group, e-commerce company from India for 16 billion dollars. They will own 77 percent of the company once the deal will be signed.

Recently they revealed new statement from Walmart. In it, representatives of the company say that there will be common work, and they will act together. The 60 percent of stocks from Flipkart hold by minority shareholders. The 4th anniversary from deal official end, with valuation with no smaller than it was paid by American retailer under an agreement which is equal to the 20.8 billion dollars.

This warning at the statement is unusual for such agreements in general. It looks more like insurance for investors who concern that they sell their parts of Flipkart early and will receive low payment from Walmart.

Some of these stockholders include co-founder of Flipkart Binny Bansal, who sold stocks for 104 million dollars but still has 4.2 percent part, Microsoft, Tencent Holdings, etc.

Meanwhile, Bansal will stay in Flipkart as its CEO. Another co-founder of the company Sachin Bansal leaves Flipkart with 1 billion dollars.

SoftBank is another shareholder at the company. Masayoshi Son, the CEO of SoftBank, was the one who announced the whole deal to journalists, even before Walmart made an official statement. SoftBank will possibly keep the shares to itself. They still calculate their future income if they will not sell Flipkart stocks now.

Japanese company believes that Flipkart has potential in it. Currently, it owns 21 percent of the company.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with our FREE daily email newsletter.