E-commerce major Snapdeal’s board will seek the views of all shareholders, including Tata group
chairman emeritus Ratan Tata
and Premji Invest, on the proposed merger
with larger rival Flipkart.
The company will share details of the deal
with all stakeholders.
started talks with Tiger Global, lead investor in Flipkart, for the merger
five months back. But the deal
has moved slowly.
Sources close to the Snapdeal
board said the company would get feedback from the investors
in the next few days, and the deal
might finally get approved.
According to sources, Flipkart
has offered $900-950 million for Snapdeal.
is almost through, but there are a few areas of concern,” another source said.
SoftBank, the largest investor in the company founded by Kunal Bahl and Rohit Bansal, declined to comment; Snapdeal
did not respond to emailed queries.
Sources said the board of Snapdeal
is expected to meet next week. Flipkart’s board is expected to meet this week to discuss the Snapdeal
has a number of other investors
— Ontario Teachers’ Pension Plan, Foxconn, Temasek and BlackRock, among others.
The board, however, wants to secure at least a billion dollars for Snapdeal, which till last year commanded a valuation of $6.5 billion and was a direct competitor to Flipkart.
Things have, however, gone downhill for Snapdeal
since then. The company has let go of nearly 9,000 workers and have been forced to shut down portals such as Exclusively and Shopo.
Till now, Flipkart
is the only contender that has sent a formal bid. Talks for a merger
also did not work out.