Top trio at Flipkart to resign post Walmart deal?

Top trio at Flipkart to resign post Walmart deal?

According to a Bloomberg report, SoftBank is going to sell over 20 per cent stake in Flipkart at a valuation of $20 billion.

Factor Daily stated some friendly investors such as Tencent, Microsoft and Tiger Global might not cash out, while Softbank, which holds 20 percent stake, will exit, making $4 billion in the process.

One of the persons said possible scrutiny from the Competition Commission of India (CCI) as well as risks related to sharing competitive data as part of due diligence were some of the reasons for Flipkart investors and management favouring a deal with Walmart and not Amazon, even though the rival's bid was slightly higher.

The acquisition of Flipkart has been a talk of the country that has kept the Indian e-commerce industry on its toes, but it seems that a deal has finally been finalized.

CEO Krishnamurthy is expected to continue in his role, but numerous reports have been pointing to the exit of one of the two founders, Sachin Bansal, who is now the executive chairman of the company. Amazon said it does not offer comments on rumors and speculation, and Flipkart did not immediately respond to a request for comment. The Walmart-Flipkart drama deal is reportedly finalised.

The partnership of Flipkart co-founders Sachin Bansal and Binny Bansal is the stuff of modern Indian business legend.

Amazon's bid is likely to be at par with Walmart Inc's bid for the Indian e-commerce company. SoftBank and Tiger Global are the two largest investors in Flipkart, with the likes of Naspers, Accel Partners, and DST Global being the other key shareholders.

Some of Flipkart's main investors - USA hedge fund Tiger Global Management, South African tech investor Naspers and venture capital firm Accel - are likely to retain small stakes, the report said.

Walmart is now seeking a bigger stake than previously expected. "There has been a shareholder realignment within Flipkart over the past few weeks, which has brought top level fissures into the open", said a source cited earlier in the report. Sources said Amazon's deal included a $2-billion breakaway fee in case the deal did not go through because investors and Flipkart cofounders are anxious that the deal will run into regulatory hurdles.

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