tinyfav.com
tinyfav.com May 23, 2018


Walmart likely to take Flipkart public in as early as 4 years

14 May 2018, 12:34 | Melanie Burgess

Walmart Beats Amazon To $16 Billion Flipkart Deal, Brings E-Commerce Battle To India

Walmart has a lot riding on Flipkart

Indian e-commerce company Flipkart might go for an initial public offering (IPO) in as early as four years if minority investors holding 60% of its shares wish so, said American retailer Walmart in a filing to the United States regulator.

Moreover, Bentonville, Arkansas-based United States retailer said in the filing that it has the right to appoint or change chief executive or other principal executives of the country's largest e-commerce company. The IPO should be done at no less a valuation than that at which Walmart invested in the Indian e-commerce firm, the filing said. That the purchase for India's most valuable startup gave Walmart a leg up over its chief rival, Amazon.com Inc., which has been investing heavily in India, only sweetened the deal. With regard to the board composition, for now it will have eight directors down from ten-out of which five will be appointed by Walmart; while two will be representatives of minority shareholders Tiger Global and Chinese internet major Tencent, along with Binny Bansal.

In case, SoftBank decides not to sell, Walmart would be left with about 55 per cent of Flipkart.

Upon the terms and subject to the conditions set forth in the Share Purchase Agreement, contemporaneously with the closing of the Share Issuance, Walmart will purchase from the Sellers Preference Shares and Ordinary Shares of Flipkart for an aggregate purchase price of approximately $14 billion in cash (the "Secondary Share Purchase", and together with the Share Issuance, the "Transactions"). Also, there will be no termination fee payable by any party if the share issuance agreement or the share purchase agreement were terminated.

On May 9 - the day the mega deal was announced - Walmart had said it supports Flipkart's ambition to transition into a publicly-listed entity in future.

"Pursuant to a registration rights agreement to be entered into concurrently with the shareholders agreement, holders of 60 per cent of the Flipkart shares held by the minority shareholders, acting together, may require Flipkart to effect an initial public offering following the fourth anniversary of closing of the transactions", Walmart said.

Brad Stevens shrugs off lack of COY votes from peers
According to a Boston.com report , Casey was one of eight coaches around the league that were nominated. He should have got a vote. "From our standpoint, I feel like it's been a lot of fun", he said.

Karun Nair replaces Kohli for Afghanistan Test, Kaul in T20 squad
The selectors also announced the squads for the limited-overs leg of the United Kingdom tour along with the India "A" tour of England.

Donald Trump now wants to save ZTE and everyone's confused
ZTE, as one of the world's largest telecom equipment makers, relied on US companies such as Qualcomm and Intel for components. Qualcomm last month said it expected lost sales to ZTE to lower its earnings by 3 cents per share in the current quarter.

For at least two years after the transactions, two of the Walmart-appointed directors will be unaffiliated with Walmart.

The Flipkart board will initially have 8 directors, as per the filing.

The veto rights for the Minority Shareholders will expire if Walmart owns 85% of the outstanding shares of Flipkart.

It said among other transfer restrictions and subject to certain exceptions, transfers of Flipkart shares will be subject to a right of first refusal exercisable by Walmart and other significant minority shareholders, and in certain situations, co-sale rights.

Walmart said it may elect to ask Flipkart to issue shares worth Dollars 3 billion within a year of close of transaction but did not clearly say if the investment would be brought in by it or a new partner. The right to buy additional stake is important as Softbank, one of Flipkart's largest shareholders with a 20% stake, has still not made a final decision to sell its holding because of tax reasons.



Other News

Trending Now

5 takeaways from 2017-18 National Basketball Association season
The Rockets won two of three regular season matchups, which gives them a solid sense of confidence entering the series. Obviously, "Cavaliers win if LeBron James" isn't really a sentence, but at this point it may as well be.

David Moyes reveals he received Premier League offer after joining West Ham
Against Brighton, at half-time I told the players they were going to lose and tonight at half-time I said we would win. Moyes had just been relegated at Sunderland and the Hammers were looking at a relegation battle.

Monster Hunter Generations Ultimate Releasing on the Nintendo Switch Soon
Even more formidable versions of familiar foes enter the fields with different moves and abilities never before seen in the wild. By linking both versions of the game online, you can then download the data onto your Switch and continue your adventure there.

Dennis loses pink on gruelling climb up Mt Etna
Four-time Tour de France victor Froome finished tenth among the first chasing group and alongside defending champion Tom Dumoulin. The Giro heads to the Italian mainland for Friday's seventh stage - a flat 159km route from Pizzo to Praia a Mare.

3 critically hurt in attack on South Africa mosque ahead of Ramadan
Speaking further, the representative noted that there had already been theft and robbery incidents at the mosque before. More details are awaited. "One of the three has just died on his way to hospital".

MMA DFS Playbook: UFC 224 - Nunes vs. Pennington
Pennington is engaged to UFC strawweight Tecia Torres , who used to train with Nunes in South Florida. I had to do it to defend this belt, defend my biggest dream.

White House to Create Artificial Intelligence Task Force
The White House, which has previously clashed with scientists over issues such as climate change, conservation and budget cuts, said it would create a new committee on AI.

Nestle pays $7.1 billion to market Starbucks' coffee
The agreement will strengthen Nestle's position in the United States, where it ranks fifth with less than 5 percent of the market. Nestle chief executive Mark Schneider described it as a "significant step". "This is all about growth", Schneider told analysts.

Tristan Thompson Gives First Interview Since Cheating Scandal
Sources close to the Kardashian family says Khloe is just doing what's best for her family. I can't imagine the kind of Mom you are to her, so, still over the moon for you.

President Trump tweets 5 key ISIS leaders captured
Rankine-Galloway, said the USA credited Iraqi security forces with the militants' capture "on the Iraq-Syria border". Ryan Dillon tweeted on Thursday that Iraq captured five key ISIS leaders as part of Operation Roundup.