BENGALURU/MUMBAI:
Flipkart is likely to make a revised offer of around $900-950 million for buying out its rival Snapdeal, sources privy to the matter said.The deal being orchestrated by Snapdeal's largest investor SoftBank has been in the making since the start of the year but has faced many impediments including a shareholder disagreement. Another point of contention has been the insertion of a non-compete clause for the
Snapdeal co-founders
Kunal Bahl
and
Rohit Bansal
which is still to be agreed upon, sources said.
“The final offer may still not touch the billion-dollar mark but is likely to be presented in another week. Flipkart has prepared a revised offer but that still has multiple complexities, “ a person aware of the development said. Flipkart is also discussing a non-compete clause for Bahl and Bansal, which will help rest rict the Snapdeal founders from starting a business in e-commerce for a certain period of time.“These details are still being worked out,“ the source said on the condition of anonymity .
The Snapdeal board had earlier said no to Flipkart's initial offer which was in the range of $700-800 million. With the exclusivity period ending for Flipkart, Snapdeal has now started working on a plan to sell off its logistics business under Vulcan Express and Freecharge, its payments platform, to shore up cash and run the company . Emails sent to Flipkart and Snapdeal asking about the revised offer did not elicit a response till the time of going to press.
In May, both the companies had signed a binding agreement after which Flipkart initiated due diligence. At that time, Snapdeal was being valued at about $1 billion. The exclusivity period of the same agreement ended on July 2.
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