Flipkart reportedly makes an offer of $1bn to acquire Snapdeal

While SoftBank and other key shareholders continue to negotiate the terms of the deal, Flipkart has in the meanwhile made an informal offer of $1 billion to buy Snapdeal in an all-stock deal, reports Livemint.

Flipkart’s offer is a non-binding one and a formal term sheet will be signed over the next few days with the due diligence process expected to commence by next week.

As we know that though SoftBank, Nexus Venture Partners and Kalaari Capital are yet to resolve their conflict, they have all at least mutually given the green signal for the deal.

"In-principle, talks are moving ahead towards the merger as broad consensus is to get the best outcome for every stakeholder. No commitments have been inked but Nexus may land up with an equity stake in the merged entity of Flipkart and Snapdeal," the report cited a person aware of the developments.

Almost a week back, the board of directors of Jasper Infotech moved a step closer to agreeing to a distress sale to Flipkart, with SoftBank finally convincing Snapdeal co-founders Kunal Bahl and Rohit Bansal, Nexus and Kalaari to agree to sell the company to Flipkart.

According to another report, Snapdeal co-founders Kunal Bahl and Rohit Bansal are likely to receive $30 million in cash each from SoftBank after their exit from the company. The payout is part of the merger of Snapdeal with Flipkart. However,  Kalaari and Nexus are still feuding over their exit payouts from SoftBank.

Investment bank Credit Suisse, which helped Snapdeal raise funds in 2014, is representing Snapdeal in the proposed deal with Flipkart.