Flipkart yet to finalize stake sale deal with Walmart

Flipkart is one of the top players in India's fast growing e-commerce sector, with an almost 40 percent share of the market. (Reuters)
Updated 04 May 2018
0

Flipkart yet to finalize stake sale deal with Walmart

MUMBAI/BENGALURU: Indian e-commerce firm Flipkart’s board is yet to finalize a deal to sell a stake to Walmart Inc, two sources with direct knowledge of the matter said on Friday, adding that a deal could just be days away.
Bloomberg reported earlier on Friday, citing unnamed sources, that Flipkart’s board had approved a deal to sell a stake of about 75 percent in the company to a group led by US retail giant Walmart for about $15 billion.
Walmart is in advanced talks with Flipkart to acquire a controlling stake in the Bengaluru-based online marketplace at a valuation of at least $18 billion, Reuters has previously reported.
A third source told Reuters that while Flipkart’s board has “in-principle” approved engaging with Walmart based on the terms of an offer before them, taxation related concerns and a few other issues need to be resolved.
Sources have said that Amazon.com Inc. has shown an interest in buying Flipkart, India’s top homegrown e-commerce firm, but a deal with Walmart is much more likely to go through. Amazon is Flipkart’s biggest rival in India.
The first two sources said Alphabet Inc. is also likely to invest in Flipkart alongside Walmart, but terms of the deal may change. Japan’s SoftBank Group, the biggest investor in the Indian firm through its private equity fund, is considering selling its stake as part of the deal if the price is right, another source said.
Flipkart and Alphabet did not respond to Reuters requests seeking comment. Walmart and SoftBank declined to comment.
Flipkart, together with its fashion units Myntra and Jabong, controls nearly 40 percent of India’s online retail market, while Amazon is a close second with a 31 percent share, according to data from research firm Forrester.
Both Amazon and Flipkart are pouring billions of dollars to win shoppers in the fast-growing market that is expected to be worth $200 billion a year within a decade.
Earlier this week, Indian TV channel CNBC-TV18 reported Amazon had made a formal offer to buy 60 percent of
Flipkart and that it had also proposed a $2 billion breakup fee to convince Flipkart to discuss its offer.


Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

Updated 41 min 5 sec ago
0

Paris Air Show: After Boeing showstopper, Airbus seeks order bounce

  • British Airways owner IAG signs letter of intent to buy 200 of its 737 MAX jets
  • Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes

PARIS: Airbus, reeling from the potential loss of a major customer for its best-selling A320neo as British Airways owner IAG placed a lifeline order for the grounded 737 MAX, prepared to hit back with more orders for its A321XLR on Wednesday.
The planemaker has been negotiating with US airlines investor Bill Franke whose Indigo Partners has also been known to place orders for multiple airlines within its portfolio and could reel it in for the Paris Air Show, industry sources said.
Airbus declined to comment.
After weathering intense scrutiny over safety and its public image, Boeing won a vote of confidence on Tuesday as IAG signed a letter of intent to buy 200 of its 737 MAX jets that have been grounded since March after two deadly crashes.
The surprise order lifted the energy of a previously subdued Paris Airshow, where the talk had been of the possible end of the aerospace cycle, given the issues at both Boeing and Airbus as well as geopolitical and trade tensions around the world.
Australia’s Qantas Airways said on Tuesday it would order 10 Airbus new A321XLR jets and convert a further 26 from existing orders already on the Airbus books.
Airbus is also in talks with leasing company GECAS and has been trying to secure an eye-catching order for the A321XLR from American Airlines, though the world’s largest carrier does not typically make announcements at air shows.
Airbus is looking for up to 200 orders for the A321XLR, which is designed to open up new routes.