Softbank initiates Snapdeal sale to Flipkart, offers to buy out Kunal Bahl, Rohit Bansal stake for $50 mn
Following months of negotiations, Japan’s SoftBank, the largest investor in Jasper Infotech-owned Snapdeal, is believed to have initiated the sale of the business to Flipkart by offering Snapdeal founders Kunal Bahl and Rohit Bansal $50 million in lieu of their stake.Kunal Bahl and Rohit Bansal, who together own 6.5% equity in Snapdeal, are expected to receive $25 million each from sale of their shares. At the same time, SoftBank, which holds a little more than 30% stake in the business, has started the process of acquiring shares of other investors, including Kalaari Capital, Nexus Venture Partners and Bessemer Venture Partners. Kalaari Capital owns less than 8% shares in the e-commerce company; Nexus Venture Partners’ equity is about 11%.It is believed that the sale of the e-commerce business will involve a share swap. The swap ratio being talked about is 1:10 in favour of Flipkart.According to the filings with the registrar of companies (RoC), Snapdeal had `1,072.2 crore as cash and bank balances as on March 31, 2016.