The days after Snapdeal has requested a $ 900 Mn payment, Flipkart has proposed a revised offer of about $ 850 million. According to reports, the giant Bangalore e-commerce pledged to pay $ 650- $ 700 million worth of securities as soon as the merger is completed.
The remaining $ 150 million will be transferred at a later date. Jasper Infotech, the parent company of Snapdeal, was informed of the revised offer late into the night.
Snapdeal to debit offices in Mumbai and Gurugram means of cost reduction
According to sources, Snapdeal e-commerce and Unicommerce company management are part of the offer. The FreeCharge digital wallet and Snapdeal Vulcan logistics express arms are not included in the market.
This occurs five days after the start-up founded by Kunal Bahl and Rohit Bansal had requested a payment of at least 900 Mn for the proposed acquisition by Flipkart.
Earlier this week, Flipkart was reportedly trying to raise $ 500 million from Snapdeal’s largest shareholder SoftBank in hopes of hastening the merger. If this happens, the giant Japanese investment to acquire a significant stake in the merged entity.
If Snapdeal accepts the last offer, both parties sign a purchase and sale agreement (PPS) within one month.
Fusion Flipkart, Snapdeal: timeline
Speculation about Flipkart, Snapdeal merger was first published in March 2017, when Softbank started looking for buyers.
Once valued at $ 6.5 billion (in February 2016), Snapdeal is struggling to stay afloat in the growth of Amazon and Flipkart competition. In April 2017, the company suffered another blow when its valuation fell below $ 1 billion.
According to documents submitted by the Republic of Congo Jaspers Infotech, the online market has recorded losses of more than $ 495 Mn (EN 3315.5 Cr) for 2016, compared to 198.2 Mn (€ 1,328) in 2015.
SoftBank, to date, has invested about $ 900 million in Snapdeal and has approximately a 33% stake. During the year ended March 2017, telecommunications and Internet conglomerate Masayoshi Son reported losses of more than $ 1.4 billion dollars in two of its major Indian paris, Snapdeal and Ola.
In early May, the two unicorns signed a non-binding letter of intent, after which negotiations began. During the past two months, Flipkart performs due diligence on Snapdeal as a means to evaluate its assets and liability profile.
During the first week of July, Snapdeal declined the offer to acquire another company Mn 700 to 800 Mn, asking for a slightly higher $ 900 Mn place.