Flipkart to Buy Snapdeal Board Approves $900-950Mn Buyout Offer

 

Over the past few years, Snapdeal has been going through tough times in the markets. It has been known that the popular e-commerce firm is in troubled waters, and was looking forward to a buyout. There had been various speculations over potential buyers, and Flipkart had emerged as one of the biggest names. There were a number of efforts Flipkart had made, but Snapdeal’s board of directors had declined their previous bid of $550-600 Million. Reports now claim that this deal has now been approved at a price of $900-950 Million.

This offer, as well as the previous ones do not include the subsidiaries of Snapdeal such as Freecharge, Vulcan Express and Unicommerce. Reportedly, the board had rejected the offer due to this in the past. With them now increasing the price, the board of directors of Snapdeal have now approved the acquisition.

Things have looked better for Snapdeal in the past few days, as their subsidiaries have been getting good bids too. Axis Bank, Amazon as well as Paytm had been bidding to take over Freecharge, and with Amazon having offered a massive sum of $80 Million, it looks like they will walk away with Freecharge. The company seems to have potential buyers for their other subsidiaries as well.

Snapdeal founders Kunal Behl and Rohit Behl have been having a number of meetings with other major companies as well, in case this deal with Flipkart falls through. As of now things are looking good for both the companies involved as the deal seems to finally be heading in the right direction with the board of directors having approved the merger. The final call now lies in the hands of Japan based Softbank, which is the lead investor in Snapdeal. If this happens, this deal would give Flipkart a major advantage against primary competitor Amazon.

Source: newsient