Sachin Bansal, Flipkart’s Founder, is expected to sell all his shares
- Sachin Bansal, Flipkart’s Founder, is expected to sell all his shares
- Wal-Mart will get 60% of the acquisition
- The remaining 15% will go to Alphabet, Google’s parent company
One of the biggest acquisitions including an Indian organization may be concluded by today. American multinational retail corporation Wal-Mart has been in the process of acquiring Flipkart which is India’s second biggest e-commerce portal, for some time and it appears the arrangement may at last be made by the signing authorities today.
Reports a week ago indicated that Flipkart’s board has endorsed the deal of Wal-Mart to let it acquire 75% of the organization. Remembering that Wal-Mart is not the only one in this wander, the organization will get around 60% stakes in Flipkart. Google’s parent organization, Alphabet, will get the other 15% and in general, it will be levied on to become a $3 billion cost between the two international stake- holders of the market.
Wal-Mart is expected to get nothing less than three seats on Flipkart’s directorate after acquisition. The organization will likewise have a say in the how Flipkart handles its money outflow and inflow and other issues related to legal matters of the company.
Sachin Bansal, Flipkart’s founder, is set to leave the organization on a whole soul. According to reports, Flipkart sales fellow benefactor will pitch their 5.5% stake in the organization to Wal-Mart, bringing in about around $1 billion in business. Marketers said that Bansal was not lined up with the system and working structure that was being proposed post Wal-Mart coming on board.
This isn’t totally new information since rumors about his departure from the company have been hovering for some time now. After Wal-Mart’s planning of acquisition of Flipkart comes through, Binny Bansal will remain on as the company’s CEO and furthermore be given the official title of Executive Chairman. Kalyan Krishnamurthy, Flipkart’s current CEO, will likewise remain with the organization however will not have permanent say on the board.
Sachin Bansal is not the only one who is clearing out from Flipkart, other major investor SoftBank which is at present Flipkart’s biggest investor and a reputed investor in market, is also taking a retreat and that too completely. Looking at SoftBank’s this move, even Tiger Global and Accel which are two other financial specialists in Flipkart, are also looking to pitch in a larger part of their stakes into the share market.