Flipkart Board may have approved revised offer from Snapdeal, report says
After first proposal getting rejected, Flipkart board has likely approved the revised offer from Snapdeal, a media report said.
Earlier, Flipkart had offered $850 million for buying Snapdeal, but got rejected as the latter found the amount undervalued the company given that the due diligence report was clean.
However, Flipkart was about to place a new offer in front of Snapdeal and the amount was likely to be around $1 billion.
Now, on Monday, a CNBC report said that Flipkart board has approved the revised offer for Snapdeal.
This update came in after another media report which said that Japanese telecom and internet conglomerate SoftBank, may soon invest $400 million in Flipkart.
According to a Factordaily report, which quoted a source saying, "This will be part of the Snapdeal-Flipkart deal, where some of the existing Snapdeal investors are looking for an exit."
SoftBank, Snapdeal's largest investor, has been proactively mediating the sale for the past few months. The Board of Snapdeal also has representation from its founders (Kunal Bahl and Rohit Bansal), Nexus Venture Partners and Kalaari Capital.
Snapdeal is also engaged in separate discussions for selling Freecharge (mobile wallet operations) and Vulcan Express (logistics arm), as reported by PTI.
The deal between Snapdeal and Flipkart, if completed, would mark the biggest acquisition in the Indian e-commerce space.
One of the leading contenders in the Indian e-tailing segment, Snapdeal has seen its fortunes failing amid strong competition from Amazon and Flipkart.
Snapdeal's valuations have also plummeted from about $6.5 billion in February 2016. SoftBank has already written off over $1 billion on valuation of its investment in Snapdeal, the PTI report said.