India/Japan: SoftBank pushes for Snapdeal sale to Flipkart

Japanese giant SoftBank is orchestrating a possible merger between the struggling Snapdeal and its bigger rival, Flipkart, according to people close to the development. The deal, if it materialises, could bring about the most significant consolidation in the cashguzzling domestic e-commerce market.

SoftBank is likely to invest up to $1.5 billion in the merged entity by picking up primary and secondary shares, giving it around 15% in the Flipkart-Snapdeal combine. With a little over 30%, Soft-Bank is the largest investor in Snapdeal, which was valued at $6.5 billion in early 2016.

The deal may include a $1 billion share sale by Flipkart’s largest investor, New York-based Tiger Global, along with an infusion of fresh equity by SoftBank, people in the know said.

Full Content: Live Mint

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