Walmart may come up with IPO for Flipkart in 4 years

Flipkart-Walmart Deal Key Reasons Why It Matters

Another clause that Walmart has put into the agreement is that it has the right to invest an additional $3 billion into Flipkart at the same valuation of its initial purchase.

Walmart wouldn't be the only party in the deal - Google parent Alphabet could take a minority stake in Flipkart valued at $1 billion to $2 billion.

Flipkart's board will be initially comprised of eight directors including five Walmart-appointed directors of which two directors must be unaffiliated with Walmart for at least two years after transaction close.

Walmart will also have right to appoint or replace the chief executive officer and other principal executives of the Flipkart group of companies, subject to certain consultation rights of the board and the founder.

"Immediately after the closing of the transactions, all Flipkart preference shares will convert into ordinary shares", Walmart said.

The filing also says that there are no termination fees linked with the transaction.

Walmart notes that it may request Flipkart to issue additional shares with an aggregate purchase price of up to $3 billion, anytime in one year after the transaction close.

Man Donated Enough Blood To Save 2 Million Children
According to the Australian Red Cross Blood Service , he has helped saved the lives of more than 2.4 million Australian babies. When he was 14 years old, Harrison underwent major surgery and depended on blood transfusions to save his life.

The logo of Flipkart is seen on the company's office in Bengaluru.

Pursuant to a Registration Rights Agreement to be entered into concurrently with the Shareholders Agreement, holders of 60% of the Flipkart shares held by the Minority Shareholders, acting together, may require Flipkart to effect an initial public offering following the fourth anniversary of closing of the Transactions at a valuation no less than that paid by Walmart under the Share Issuance Agreement, subject to the satisfaction of certain other conditions regarding such offering (the "IPO").

The remainder will be held by existing shareholders, including Flipkart co-founder Binny Bansal, China's Tencent Holdings Ltd (0700.HK), Tiger Global Management and Microsoft Corp (MSFT.O), the company said.

As per SEC filing, Walmart may take Flipkart public in four years.

"While the immediate focus will be on serving customers and growing the business, Walmart supports Flipkart's ambition to transition into a publicly-listed, majority-owned subsidiary in the future", Bentonville, Arkansas-based Walmart said Wednesday, before details of the arrangements were disclosed in the filing late Friday. Post which the U.S. retailer's shareholding is likely to cross 85%.

Walmart and other significant minority shareholders - it didn't spell out who - will also have the right of first refusal on transfer of Flipkart shares along with co-sale rights in certain situations. Walmart will still hold a 42% stake in the company, but this marks a retreat from the United Kingdom market in the face of fierce competition from Tesco, Morrisons, Aldi and Lidl.

In case, SoftBank decides not to sell, Walmart would be left with about 55 per cent of Flipkart. If this happens, then Walmart's shareholding in the Indian e-tailer could go up by a further 12-14 per cent, pushing its shareholding beyond 85 per cent. "If the drag along right is exercised, each minority shareholder must be entitled to sell all of its shares in the proposed transaction", the filing added. Sources, however, said SoftBank is yet to take a call on exiting Flipkart.The factors that hold key to the decision include the tax SoftBank has to pay on profits it would earn from such share sale.

Related News:

  • Castellanos, Candelario out of starting lineup for Tigers

    Castellanos, Candelario out of starting lineup for Tigers

    Castellanos was hit by a pitch in the first inning of the second game of Saturday's doubleheader , and he left soon after that. The Tigers' hitters have been led by third baseman Jeimer Candelario and right fielder Nicholas Castellanos .
    United States  wants to work with Europeans on new Iran deal: Pompeo

    United States wants to work with Europeans on new Iran deal: Pompeo

    Lederer, Ian Deitch, Sarah el Deeb and Bassem Mroue of The Associated Press; and by Peter Baker of The New York Times. Information for this article was contributed by Amir Vahdat, Angela Charlton, Lorne Cook, Geir Moulson, Edith M.
    Khloe Kardashian says her baby daughter is

    Khloe Kardashian says her baby daughter is "sweet and patient"

    She is Kardashian's first child with partner Thompson who plays for National Basketball Association team Cleveland Cavaliers. The lone Kardashian brother is still furious with Thompson, according to a report by TMZ . "Baby True is eating, sleeping".
  • Man City boss Pep Guardiola fears Liverpool title threat next season

    Man City boss Pep Guardiola fears Liverpool title threat next season

    That would mean Ederson Moraes returns in goal for the champions, with Chilean worldwide Claudio Bravo making way. In the middle of the park, Fernandinho will assume duties as the defensive anchor to shield the back four.
    Ireland 64/0 following on, 116 runs behind Pakistan at stumps

    Ireland 64/0 following on, 116 runs behind Pakistan at stumps

    But at close of play at 7pm, Ireland were 64 without loss in their second innings, and suddenly Test cricket seemed a whole lot... Pakistan declared its first innings on 310 for 9 in the only Test match against Ireland on Sunday after playing 96 overs.
    Portsmouth MP pays tribute to Tessa Jowell

    Portsmouth MP pays tribute to Tessa Jowell

    A strong supporter of then-Prime Minister Tony Blair , Dame Tessa was reported to have said she would "jump under a bus" for him. Dame Tessa, who served as culture secretary from 2001 to 2007, played a major role in securing the London 2012 Olympics.
  • RAGE 2 Is Almost Certainly Getting Announced Tonight

    RAGE 2 Is Almost Certainly Getting Announced Tonight

    ET, depicting a rocket firing toward the sky and billows of pink smoke emanating from the bottom, with "5-14" branded on its side. However, the biggest hint is the last tweet that Bethesda shared as you can see, a Rage character is visible on this one.
    Fox says guest who criticized McCain won't be back

    Fox says guest who criticized McCain won't be back

    Many Democrat senators were against Haspel's appointment as she failed to answer questions pertaining to the enhanced interrogation program during the Bush administration.
    5 killed in storm; air, road traffic badly hit

    5 killed in storm; air, road traffic badly hit

    Several areas in Gurugram and east, west and outer Delhi saw outages that ran up to five hours, officials said. Flights from Tokyo, Newark and Colombo were diverted to other airports, people familiar with the matter said.
  • Man and child injured following aircraft crash in Leinster

    Man and child injured following aircraft crash in Leinster

    He then called 999 and waited at the scene to direct the emergency services to the crash site. It was found about 2km from the airfield in bogland after a search by emergency services.
    Leinster Defeat Racing 92 To Become European Champions!

    Leinster Defeat Racing 92 To Become European Champions!

    Wicklow man Leo Cullen made history today as the first rugby player to win the European Champions Cup as both manager and player. Isa Nacewa kicks the winning penalty for Leinster during the European Rugby Champions Cup final.
    Multiple blasts hit Afghanistan; gun battle underway

    Multiple blasts hit Afghanistan; gun battle underway

    The Islamic State group claimed it carried out the attack, in a statement from its Amaq propaganda agency. At least nine people, including a child, had been killed and 36 wounded, public health officials said.


Most liked

T20 2018: Chennai beat Hyderabad by 8 Wickets
They were severe on any loose deliveries and chose to run those singles and doubles whenever the opportunity presented. After the match, Kane Williamson conceded that the Sunrisers Hyderabad were outplayed by the southern rivals.

Zverev beats Thiem to Mutua Madrid Open title
But the Austrian was outplayed, and over-powered, by Zverev, who collects his third ATP World Tour Masters 1000 title. Asked if he feels at that level, the German replied: 'Rafa is the favorite no matter where he plays on a clay court.

Nuclear deal exit amplifies Iranians' frustrations with life at home
If they're going to see that it's not in their interest to stay in the deal; we're going to have to watch what the Iranians do. Hostilities between Iran and Israel have already escalated in recent days.

Trump's Iran Deal Exit Halts Historic, $40 Billion Boeing, Airbus Deals
Boroujerdi also said that now Iran can seize the opportunity to show that Iran's economy is resilient against sanctions. Under the terms of the JCPOA , Iran is now in a position to accuse the US of violating the agreement.

India Cricketers take to Twitter on the occasion of Mother's Day
Anna, perhaps seeing that the holiday would be over-commercialized, said she wanted it "to be a day of sentiment, not profit". Mom knew she would not live to see them bloom yet she yearned and prayed to see the spring flowers again.

Joe Russo Shoots Down Hulk Theory, Offers Surprisingly Deep Explanation — INFINITY WAR
Anthony Russo said, "that might be a question for future storytellers". "I think he's had enough of saving Banner's a**". Despite all the heartaches that Avengers: Infinity War brought, the movie was still rife with some great jokes.

Jerusalem soccer club seeks to change name to honor Trump
This year, Nakba day will also coincide with the start of the month of Ramadan, which usually sees a rise in clashes. The new US embassy in Jerusalem is set to open on Monday, coinciding with Israel's Independence Day .

Tiger will play at The Open in July
The much-anticipated Tiger Woods-Phil Mickelson showdown at the 2018 Players Championship did not live up to its billing. But after a par 3 at No. 13 Mickelson played one of the worst stretches of golf during his Hall of Fame career.

'Bloodstained: Curse of the Moon' (ALL) Announced - Screens & Trailer
Kickstarter backers who donated over the $28 tier will receive a code for the spin-off that'll allow them to play for free. Now, Curse of the Moon will enable Inti and Igrashi to capture the spirit of the NES Castlevania games in a new package.

Chemring Group plc (LON:CHG) Weekly Ratings as of May 12, 2018
The companyÂ's Coal segment is involved in the extraction of metallurgical and thermal coal; and provision of logistic services. On Thursday, November 30 the stock of On the Beach Group plc (LON:OTB) has "Buy" rating given by Numis Securities.

Oklahoma Passes Adoption Law That LGBT Groups Call Discriminatory
By protecting their right to operate in accordance with their religious beliefs, supporters say it encourages placing agencies to do business in Oklahoma.

Trump Extends Lifeline to Sanctioned Tech Company ZTE
Beijing has closely followed the developments around ZTE, a company with 80,000 employees headquartered in southern China. Too many jobs in China lost. "Commerce Department has been instructed to get it done", Donald Trump wrote on Twitter .

Family of seven found dead in rural Australia
Police say they were alerted to the killings by a phone call from a man at the property early on Friday morning. Haynes told 9 News that over the years, Cynda Miles had become a beloved member of the small community.

Amitabh Bachchan's epic reaction after watching Avengers: Infinity War
Rom-com " Overboard " slipped from second to fourth place with a box office take of $10.1 million its second weekend in theaters. And it didn't match the $19.5 million opening of Amy Schumer and Goldie Hawn's Snatched over Mother's Day weekend past year .

I won't hinder Rooney if he wants to leave Everton, insists Allardyce
Everton have invited Wayne Rooney's representatives for disaster talks over the previous England captain's future. When first asked about the deal, Olson told reporters in the U.S. : "I don't know what you're talking about".