Japanese multinational telecommunications corporation SoftBank Group has offered to buy shares from investors and former and existing employees of Indian e-commerce website Flipkart, valuing it around $9-10 billion.
SoftBank has offered to buy Flipkart shares at $85-89 per share, Mint reported.
The price range values Flipkart slightly lower than the pre-money valuation it clinched in two funding rounds of $1.4 billion each, one from SoftBank in August and the other from eBay Inc., Microsoft Corp. and Tencent Holdings Ltd in April.
SoftBank’s move is a part of its August commitment to pick up additional stakes in the e-commerce giant. Out of the total $2.5 billion investment commitment, SoftBank will use around $1.2-1.4 billion in buying out shares of other investors and employees.
It is expected that Tiger Global, one of the key investors in Flipkart will be selling a substantial part of its shares to SoftBank, taking a partial exit.
If this deal goes through, SoftBank will hold around 18-20 percent of the company, giving it a significant position on the board. The other big power block on Flipkart’s board is the Tencent-Naspers duo- both of whom remain committed to the company.
SoftBank has been quite active in the recent times. SoftBank is also looking to invest around $400-500 million in Indian cab-aggregator giant Ola to pick up a 10-12 percent stake.
SoftBank, with the backing of its $100-billion Vision Fund, is committed to taking long-term bets on e-commerce and ride-hailing companies globally, and India is a key focus area.