Monday, 14 May 2018

Walmart may put $ 3 billion more in Flipkart, take over 85% stake


MUMBAI: Walmart could invest $3 billion more in Flipkart within a year of completing the purchase of 77 per cent stake in the Indian e-commerce company, the world's largest retailer said in a filing to the US Securities and Exchange Commission on Friday. Walmart's additional share purchase, if made, will be at the same price at which it made the initial investment, the filing said. This could take Walmart's stake to over 85 per cent.
The price at which Walmart bought Flipkart stake has not been disclosed, and different tranches could have been purchased at different prices. Walmart's filing assumes significance at a time when Flipkart's key shareholder, Japanese internet and telecoms giant, Soft-Bank, is undecided about the sale of its shares. SoftBankholds approximately 22 per cent in Flipkart. As TOI reported on May 12, Walmart and SoftBank are in talks to decide on a time to execute the share transaction at a predetermined price. The Masayoshi Son-led, SoftBank group invested $2.5 billion in Flipkart in August last year through its $100 billion Vision Fund.


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