Mumbai (Wire Service) – The U.S. based multinational retail corporation announced that it would be filing with a U.S regulator that would take the Flipkart in public in a short span of time. This would be for the first time presenting a dormant listing timeline for the largest ever accretion of the retail company.
Investors who hold a 60 percent of the Flipkart shares “acting together, may require Flipkart to effect an initial public offering” or four years after the deal said the Bentonville, Arkansas-based retailer post-filing with the U.S. Securities and Exchange Commission.
Walmart to pay $1.6 billion for a 77 percent stake in India’s largest e-commerce portal. The U.S retail giant Walmart has made the largest deal ever in order to arch-rival Amazon.com Inc.
The IPO should be performed at the least valuation than which Walmart invested in Flipkart, as said by the filing. The deal also announced that Walmart would engage five directors to Flipkart board name by a minority. Bansal would take the filling by taking the on a board seat. Walmart announced that in future it would may add a sixth member with the consent of the board of directors.
It also added that it could appoint or replace Flipkart chief executive and other major executives of group companies in reference with Basal and the board.
Walmart could even ask Flipkart to consider issuing ordinary shares up to $3 billion before the end of transactions or before the date of the closing anniversary. As per Reuters, the deal could be occluded before the close of the Walmart Flipkart deal.
As per the Economic Times newspaper the adducing unnamed sources, which Softbank Group that owned a 20 percent stake in Flipkart, was rethinking about exit due to the heavy tax liabilities.