SoftBank steers Flipkart-Snapdeal merger talks to broad agreement
Masayoshi Son-led Japanese internet conglomerate SoftBank, which is orchestrating a merger between e-tailers Flipkart and Snapdeal, has reportedly reached a broad agreement with stakeholders on the deal.
With this, the merger, which hasn’t made any headway over the last few weeks, has inched closer to seeing the light of the day,Nikkei Asian Review reported. It added that SoftBank, which is looking to own about 20% of the combined entity, will put in more money via its massive joint investment fund.
In April, it was reported that SoftBank, the largest investor in Snapdeal, was to put $500 million into Flipkart. However, it was contingent on the overall terms of the deal.
The deal talks—which ran into a stalemate due to disagreements over valuation between Nexus Venture Partners and Kalaari Capital on one side and SoftBank on the other—picked up pace last month after SoftBank managed to convince Snapdeal’s early investors. However, the fate of Snapdeal’s associated entities, including in-house logistics arm Vulcan Express, payment wallet FreeCharge and e-commerce solutions wing Unicommerce, is still unclear.