Snapdeal approves Flipkart's $900-950 million buyout offer: Sources

The merger between the two businesses was postponed because of disagreements over the purchase of subsidiaries.
Snapdeal board has declared Flipkart’s USD 900-950 million buyout offer, sources informed CNBC-TV18. The bargain today requires Snapdeal Visitor’s acceptance.

On July 17, Flipkart has created a revised deal into Snapdeal, which didn’t include its subsidiaries such as FreeCharge, Vulcan Express and Unicommerce.

Infibeam isn’t very likely to be a part of the bargain, in accordance with the sources.

Snapdeal and Flipkart plank are expected to meet this week to signal up for Term Sheet and finalise the deal.

The deal is anticipated to be carried out in 3 parts. SoftBank will buyout bet from Snapdeal and its shareholders — Nexus and Kalaari Capital. The capital will then be placed into Flipkart by SoftBank. In the previous stage, Flipkart will merge with Snapdeal.

The swap ratio of the deal is very likely to be finalised by Flipkart in its board meeting on Friday. The deal is anticipated to be completed within 3 months from signing of Term Sheet.

SoftBank is very likely to hold 20 percent in the combined entity. Flipkart will retain Snapdeal’s brand name in the starting stages.

FreeCharge sale is also inclined to be completed soon.

The merger between the two companies were delayed due to disagreements over acquisition of subsidiaries.

Snapdeal has been mulling a Plan B in the event the deal with Flipkart doesn’t go through.

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