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Snapdeal to seek shareholders view before giving final nod to Flipkart

Snapdeal board said the company would get feedback from the investors in the next few days

Karan Choudhury 

Flipkart has offered $900-950 million for Snapdeal.

E-commerce major Snapdeal’s board will seek the views of all shareholders, including chairman emeritus and Premji Invest, on the proposed with larger rival The company will share details of the with all stakeholders.

started talks with Tiger Global, lead investor in Flipkart, for the five months back. But the has moved slowly.

Sources close to the board said the company would get feedback from the in the next few days, and the might finally get approved.

According to sources, has offered $900-950 million for “The 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; did not respond to emailed queries.

Sources said the board of is expected to meet next week. Flipkart’s board is expected to meet this week to discuss the buy-out.

has a number of other — Ontario Teachers’ Pension Plan, Foxconn, Temasek and BlackRock, among others.

Premji Invest, the personal arm of Chairman Azim Premji, has already written to seeking greater clarity on the It has also called for equal treatment of for payouts from the

Japanese major spent weeks convincing other large investors, and Kalaari Capital, to come on board with the The talks were stuck again after sent an initial bid of about $800 million.

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

Things have, however, gone downhill for 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, is the only contender that has sent a formal bid. Talks for a with also did not work out.

First Published: Thu, July 27 2017. 03:53 IST