Home World Business Flipkart may woo Snapdeal with revised bid after rejection of $800 mn...

Flipkart may woo Snapdeal with revised bid after rejection of $800 mn offer

2
0
SHARE

New offer to be closer to Snapdeal demand of $1 bn; deal to conclude in a month, if accepted

Online marketplace biggie is all set to revise the bid to buy after the latter’s board of directors rejected the first offer of nearly $800 million.

The bid, which might be sent in the next few days, would be close to the board’s demand of a billion dollars, sources close to the board said. They added that if the terms are accepted, the deal would be completed within a month or so.

The board members had last rejected the offer of $800 million made by Tiger Global-backed domestic online retail giant Flipkart, but sources said talks are still on. The board, which pegged the valuation of the company at a billion dollars, was unhappy with the quote given by Flipkart, informed sources said.

“The board is unhappy with pegging the valuation nearly $200 million less, even though cleared the due diligence. The board is, however, hopeful would reconsider the offer,” sources earlier said.

SoftBank, the Snapdeal’s largest investor, has been proactively mediating the sale for the past few months. The board also has representation from founders and Rohit Bansal, and

is also engaged in separate discussions for selling ( operations) and (logistics arm). These deals are also likely to be closed over the next few weeks.

The deal between and Flipkart, if completed, would mark the biggest acquisition in the Indian space. One of the leading contenders in the Indian space, has seen its fortunes failing amid strong competition from Amazon and

has seen its valuations also plummeting from about $6.5 billion in February 2016. has already written off over $1 billion on valuation of its investment in

Flipkart may woo Snapdeal with revised bid after rejection of $800 mn offer

New offer to be closer to Snapdeal demand of $1 bn; deal to conclude in a month, if accepted

Online marketplace biggie Flipkart is all set to revise the bid to buy Snapdeal after the latter’s board of directors rejected the first offer of nearly $800 million. According to sources the bid which might be sent in the next few days would be close to the Snapdeal board’s demand of a billion dollars, sources close to the board said. They added that if the terms are accepted, the deal would be completed within a month or so.The Snapdeal board members had last rejected the offer of $800 million made by Tiger Global-backed domestic online retail giant Flipkart, but sources said talks are still on. The board, which pegged the valuation of the company at a billion dollars, was unhappy with the quote given by Flipkart, informed sources said. “The board is unhappy with Flipkart pegging the valuation nearly $200 million less, even though Snapdeal cleared the due diligence. The board is, however, hopeful Flipkart would reconsider the offer,” sources earlier said.SoftBank, the Snapdeal’s …

Online marketplace biggie is all set to revise the bid to buy after the latter’s board of directors rejected the first offer of nearly $800 million.

The bid, which might be sent in the next few days, would be close to the board’s demand of a billion dollars, sources close to the board said. They added that if the terms are accepted, the deal would be completed within a month or so.

The board members had last rejected the offer of $800 million made by Tiger Global-backed domestic online retail giant Flipkart, but sources said talks are still on. The board, which pegged the valuation of the company at a billion dollars, was unhappy with the quote given by Flipkart, informed sources said.

“The board is unhappy with pegging the valuation nearly $200 million less, even though cleared the due diligence. The board is, however, hopeful would reconsider the offer,” sources earlier said.

SoftBank, the Snapdeal’s largest investor, has been proactively mediating the sale for the past few months. The board also has representation from founders and Rohit Bansal, and

is also engaged in separate discussions for selling ( operations) and (logistics arm). These deals are also likely to be closed over the next few weeks.

The deal between and Flipkart, if completed, would mark the biggest acquisition in the Indian space. One of the leading contenders in the Indian space, has seen its fortunes failing amid strong competition from Amazon and

has seen its valuations also plummeting from about $6.5 billion in February 2016. has already written off over $1 billion on valuation of its investment in

image

Karan Choudhury

Business Standard

http://bsmedia.business-standard.com/_media/bs/wap/images/bs_logo_amp.png 177 22

LEAVE A REPLY

Please enter your comment!
Please enter your name here