Softbank offers to buy Flipkart shares, values it at $9-10 bn

Softbank has offered to buy shares in the range of $85-89 per share from investors and former and existing employees of Flipkart.

image of Flipkart hoarding
SoftBank Group Corp. has offered to buy shares from investors and former and existing employees of Flipkart Ltd, valuing the e-commerce marketplace at $9-10 billion, three people familiar with the matter said. Investment bank Goldman Sachs is managing the share sale.
SoftBank has offered to buy Flipkart shares in a range of $85-89 per share, the people said on condition of anonymity. 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.
In August, along with the primary fund infusion into Flipkart, SoftBank had also agreed to buy shares worth $1.2-$1.4 billion from Flipkart shareholders. The share sale and the fund infusion are likely to be completed in December.
The Flipkart-SoftBank deal has transformed Flipkart’s ability to compete with Amazon India, giving it a backer that can pump in whatever cash is needed to compete with Amazon.
Source: Mint

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