INSUBCONTINENT EXCLUSIVE:
with the US market regulator SEC.
The Bentonville-headquartered company said earlier this week that it will invest $16 billion in Flipkart
and Singapore-registered company at $22 billion
This includes $14 billion earmarked for purchasing shares from existing shareholders and fresh capital infusion of $2 billion in
decision to sell its stake because of tax reasons and also sees further valuation upside, as ET reported in its May 11 edition.
The filing
also says that there are no termination fees linked with the transaction
completed and at a valuation higher than what Walmart has paid in this transaction.
This deal has also led to a restructuring of the
As per the filing, the Flipkart board will initially have eight directors, five of which would be appointed by Walmart
But two of the directors appointed by the US retailer would not be affiliated with Walmart for the next two years.
Two directors are
expected to be appointed by minority shareholders (which include Tiger Global, Tencent, Microsoft) and one founder (Binny Bansal), who holds
Flipkart co-founder and executive chairman Sachin Bansal, who is selling his stake worth $1 billion, will also not be part of the board.
The
deal is expected to be closed by FY19, subject to regulatory approval by the Competition Commission of India (CCI) and absence of
governmental or shareholder litigation challenging the transaction, among other things, said the filing.
Once the deal closes, Walmart also
However, for now, Walmart has expressed their enthusiasm about the current leadership of now executive chairman Binny Bansal and Flipkart
CEO Kalyan Krishnamurthy and other key executives.
