However, investors and the founders of Flipkart are reportedly more in favour of a deal with Walmart.

Amazon makes formal offer to pick up 60 per cent stake in Flipkart CNBC TV18 report
Atom M&A Wednesday, May 02, 2018 - 19:08

As Walmart-Flipkart deal enters final stages, it seems like Amazon is not backing down from the deal either. According to a CNBC TV18 report, the US-based e-tailer has made a formal offer to buy a 60% stake in Flipkart on Monday.

Amazon, which is said to be making an offer that is on par with Walmart’s bid is also reportedly looking to sign a non-compete agreement with Flipkart’s founders.

As reported by FactorDaily earlier, the CNBC TV18 report also states that Amazon, in its bid, has offered a breakup fee of $2 billion. What the shareholding pattern is or what the structure of the deal is not known as yet.

However, investors and the founders of Flipkart are more in favour of a deal with Walmart.

Walmart has entered the final leg of negotiations to buy a majority stake in Flipkart. The deal, in which Walmart will buy at least 55% stake may value the Indian ecommerce major at over $20 billion. As some final contours of the deal between Flipkart’s investors, especially SoftBank and Walmart continue, the deal could be finalised in a month’s time.

As per the latest details reported about the deal, Walmart will be retaining the current structure of Flipkart with co-founders Binny Bansal (group chief executive officer) and Sachin Bansal (executive chairman) and CEO Kalyan Krishnamurthy retaining their roles even after the acquisition.

According to a report in Economic Times on Wednesday, Flipkart will also be buying back its shares from minority shareholders to turn the company into private limited. It has reportedly set aside an amount of $400 for the same. The aim is to bring down the number of shareholders to below 50. This is mandatory to file with the appropriate authority in Singapore where the parent firm is registered to obtain the status of a private limited company.

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